An Assessment of Values Concerning Luxury Brand Purchase Intentio

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Graduate School
2015
An Assessment of Values Concerning Luxury
Brand Purchase Intention: A Cross-Culture
Comparison
Tagreed Saleh Abalkhail
Louisiana State University and Agricultural and Mechanical College, [email protected]
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Recommended Citation
Abalkhail, Tagreed Saleh, "An Assessment of Values Concerning Luxury Brand Purchase Intention: A Cross-Culture Comparison"
(2015). LSU Doctoral Dissertations. 2851.
https://digitalcommons.lsu.edu/gradschool_dissertations/2851
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AN ASSESSMENT OF VALUES CONCERNING LUXURY BRAND
PURCHASE INTENTION: ‎
A CROSS-CULTURE COMPARISION
A Dissertation
Submitted to the Graduate Faculty of the
Louisiana State University and
Agricultural and Mechanical College
in partial fulfillment of the
requirements for the degree of
Doctor in Philosophy
in
The Department of Textiles, Apparel Design and Merchandising
by
Tagreed Abalkhail
B.S., Qassim University, 2000
M.S., King Abdulaziz University, 2010
August 2015
ACKNOWLEDGMENTS
I would like to express my special appreciation and gratitude to my advisor Dr.
Delisia ‎Matthews, for her excellent guidance, care, encouragement, and patience. I would
like to thank her for ‎everything that she has done for me. Her suggestions and advice
have been priceless. ‎
I would also like to thank all of my committee members for their help and
dedication. Dr. Jenna Kuttruff, I will never forget ‎your support and help when I first came
to LSU. I will also never forget you as my first advisor. ‎Dr.Chuanlan Liu, thank you for
serving as one of my committee members. My special thanks go to Dr. ‎Eugene Kennedy
for all of his feedback and statistical expertise. I would also like to thank Dr. Judith Anne
Garretson‎Folse‎for‎serving‎as‎the‎Dean’s‎representative‎on‎the‎‎doctoral committee.‎
I would also like to thank all of the LSU TAM professors, staff, and friends,
especially Mrs. ‎Melinda Mooney for helping my student life be enjoyable and for all of
her help. I would like to express ‎my special thanks to all of the Middleton Library staff
and faculty, who were there to support me when I ‎needed help.‎
Special thanks go to my family. Words cannot express how grateful I am to my
mother and ‎father for all of their sacrifices. I would like express appreciation to my
beloved husband Saleh, who ‎was always there to cheer me up and who stood by me
through the good times and bad. At the end, ‎this work is a little gift to my lovely children:
Nawaf, Danah, and Felwa.‎
ii
TABLE OF CONTENTS
Page
ACKNOWLEDGMENTS ................................................................................................. ii
LIST OF TABLES...............................................................................................................v
LIST FIGURES ................................................................................................................vii
ABSTRACT ....................................................................................................................viii
CHAPTER 1: INTRODUCTION....................................................................................... 1
1.1 Background................................................................................................................... 4
1.1.1 Luxury……………................................................................................................‎4
1.1.2 Individualism versus collectivism.......................................................................... 5
1‎.1.3 Functional value…................................................................................................. 8
‎1.1.4 Social value...........................................................................................................11
‎1.1.5 Individual value ……...........................................................................................15
‎1.1.6 Consumer guilt..................................................................................................... 18
1.1.7 Attitude and Luxury purchase intention ………………….…………………….19
1.2 Summary.................................................................................................................... 21
CHAPTER 2: THE LITERATURE THAT INFORMS THE RESEARCH..................... 22
‎2.1 Luxury......................................................................................................................... 22
‎2.2 Individualism and Collectivism.................................................................................. 26
‎2.3 Luxury values ..............................................................................................................28
‎‎‎‎2.3.1 Functional value................................................................................................... 28
‎‎‎‎2.3.2 Social value.......................................................................................................... 32
‎2.3.3 Individual value................................................................................................... 35
‎2.4 Consumer guilt.............................................................................................................38
‎2.5 Attitude and Luxury purchase intention..................................................................... 40
‎2.6 Conceptual framework................................................................................................ 42
‎2.7 Hypotheses.................................................................................................................. 43
‎2.8 Summary..................................................................................................................... 45
CHAPTER 3: METHODOLOGICAL FRAMEWORK................................................... 46
‎3.1 Sampling..................................................................................................................... 46
‎3.2 Measurement............................................................................................................... 47
‎3.3 Procedure.................................................................................................................... 53
3.4 Data analysis ‎.............................................................................................................. 54
‎3.5 Summary..................................................................................................................... 57
iii
CHAPTER 4: RESULTS.................................................................................................. 58
‎4.1 Preliminary Screening Procedures...............................................................................58
‎‎‎‎4.1.1 Screening for Normality ‎..................................................................................... 58‎‎
‎‎‎‎4.1.2 Screening for Outliers........................................................................................... 59
‎4.2 Descriptive Statistics ‎...................................................................................................60
‎‎‎‎4.2.1 Description of Sample.......................................................................................... 60
‎‎‎‎4.2.2 Description of Brand Purchase Intention............................................................. 61
‎‎‎‎4.2.3 Description of the Study Variables.......................................................................63
‎4.3 Correlations between the Study Variables.................................................................. 64
‎4.4 Results of the Hypotheses Tests .................................................................................65
‎‎‎‎4.4.1 Procedure............................................................................................................. 65
‎‎‎‎4.4.2 Findings for the Proposed Measurement Model.................................................. 69
‎4.4.3 Exploratory Factor Analysis on the Measurement Model ‎...................................74
‎‎‎‎4.4.4 Findings for the Structural Model........................................................................ 79
‎‎‎‎4.4.5 Findings for the Structural Model (females only)‎................................................84
‎4.4.6 Testing the Mediating Effect of Luxury Brand Attitudes ....................................86
‎4.4.7 Testing for Moderation.........................................................................................88
‎4.5 Summary......................................................................................................................94
CHAPTER 5: DISCUSSION AND CONCLUSIONS......................................................95
‎5.1 Discussion of Major Findings and Hypotheses Testing .............................................95
‎5.2 Conclusion ................................................................................................................102
‎5.3 Theoretical Implications ...........................................................................................103
‎5.4 Managerial Implications ...........................................................................................104
‎5.5 Limitations and Future Research...............................................................................106
‎5.6 Summary....................................................................................................................107
REFERENCES................................................................................................................108
APPENDIX A: IRB FORMS..........................................................................................120
APPENDIX B: SURVEY QUESTIONS.........................................................................121
APPENDIX C: TRANSLATED SURVEY.....................................................................136
VITA................................................................................................................................142
iv
LIST TABLES
1: The variables scales.......................................................................................................50
2: Skewness and Kurtosis Statistics for the Study Variables (N = 454)........................... 58
3: Frequencies and Percentages for the Variables Describing the Sample....................... 60
4: Frequencies and Percentages for the Luxury Brands Purchased.................................. 62
5: Descriptive‎Statistics‎and‎Cronbach’s‎Alpha‎for‎the‎Study‎Measures .........................64
6: Pearson Correlations between the Study Variables for the Whole Sample
(N = 448). ..........................................................................................................................66
7: Pearson Correlations between the Study Variables for the United States Sample
(N = 171) ...........................................................................................................................67
8: Pearson Correlations between the Study Variables for the Saudi Arabia Sample
(N = 277) ...........................................................................................................................68
9: Fit Indices and Their Threshold Values ......................................................................70
10: Fit Indices for the Measurement Models.....................................................................71
11: Unstandardized and Standardized Coefficients for the Best-Fitting Measurement
Model.................................................................................................................................71
12: Varimax Rotated Solution for the Full Sample (N = 448) ..........................................76
13: Varimax Rotated Solution for The measurement Model with The United States
Sample................................................................................................................................77
14: Varimax Rotated Solution for The measurement Model with The Saudi Arabian
Sample................................................................................................................................79
15: Fit Indices for the Structural Models...........................................................................82
16: Unstandardized and Standardized Path Coefficients for the Structural Models .........83
17: Fit Indices for the Structural Models...........................................................................85
18: Unstandardized and Standardized Path Coefficients for the Structural Model (Saudi
Arabian Females Only) .....................................................................................................86
19: Standardized Direct and Indirect Effects of the Independent Variables......................87
v
20: Standardized Path Coefficients to Luxury Purchase Intention within Low and High
Collectivism Groups..........................................................................................................88
21: Standardized Path Coefficients to Luxury Purchase Intentions within Low and High
Individualism Groups.........................................................................................................90
22: Standardized Path Coefficients to Luxury Purchase Intentions within Low and High
Guilt Groups.......................................................................................................................92
23: Results of Hypotheses Testing.....................................................................................96
vi
LIST OF FIGURES
1: Dimensions of luxury value perceptions........................................................................ 7
2: Cluster comparison: ..................................................................................................... 33
3: Proposed model............................................................................................................ 43
4: Standardized coefficients for the revised measurement model.....................................72
5: Standardized coefficients for the best-fitting measurement model.............................. 73
6: Standardized path coefficients for the structural model (whole sample)...................... 80
7: Standardized path coefficients for the structural model (United States) ......................81
8: Standardized path coefficients for the structural model (Saudi Arabia) .......................81
9: Standardized path coefficients for the structural model (United States females) .........84
10: Standardized path coefficients for the structural model (Saudi Arabian females)......85
11: Standardized path coefficients for the low (above) and high (below) collectivism
groups.................................................................................................................................89
12: Standardized path coefficients for the low (above) and high (below) individualism
groups.................................................................................................................................91
13: Standardized path coefficients for the low (above) and high (below) guilt groups.....93
vii
ABSTRACT
Over the last few decades, the global consumption of luxury brands has rapidly
increased. ‎There are many internal and external factors that motivate consumers to buy a
luxury brand. ‎Although there is some evidence of the impact of functional, social, and
individual values on ‎luxury purchase intention, little has been done to compare cultures in
terms of these values, ‎especially in the Middle East. Thus, the purpose of this research
was to compare Western and ‎Middle Eastern culture (individualism and collectivism)
regarding‎the‎consumers’‎intention‎to‎purchase‎a‎luxury‎brand‎in‎terms‎of‎‎three main
values (functional, social and individual), while also addressing consumer guilt. ‎
The data for this study were collected from two countries—the United States and
Saudi ‎Arabia. A total of 478 university students participated in this study via an online
survey: 171 ‎from the United States and 277 from Saudi Arabia. The reliability of research
scales was ‎assessed ‎through‎Cronbach’s‎alpha.‎Pearson’s‎correlation‎coefficient‎was‎
applied to test the correlations ‎between the study variables. Data was assessed using
SEM. Before testing the proposed ‎structural model, the measurement model was tested
by a confirmatory factor analysis using the ‎AMOS 21 program. Model fit was assessed
via the chi-square statistic. The results revealed that ‎Functional and Social values
significantly predicted Luxury Purchase Intention while Individual ‎Value did not.
Cultural Dimension did not moderate the relationship between Functional Value ‎and
Luxury Purchase Intention. Individualism moderated the relationship
between ‎Conspicuousness and Luxury Purchase Intention. The relationship between
Conspicuousness and ‎Luxury Purchase Intention was stronger within the high
individualism group. Meanwhile, Guilt ‎moderated the relationship between Uniqueness
viii
and Luxury Purchase Intention. The relationship ‎between Uniqueness and Purchase
Intention was stronger within the high guilt group. However, ‎Cultural Dimension and
Consumer Guilt did not moderate the relationship between Individual ‎Value and Luxury
Purchase Intention. Attitude toward Luxury did not mediate the relationship ‎between
Functional and Social Value and Luxury Purchase Intention but it is partially mediated ‎by
the relationship between Individual Values and Luxury Purchase Intentions. These results
add ‎to the existing literature by addressing consumer guilt and Middle Eastern culture to
luxury ‎marketing, which can then be used for marketing purposes and to increase the
sales of luxury ‎brands. Theoretical and practical implications were provided based on the
results.‎
ix
CHAPTER 1: INTRODUCTION
Traditionally, rare pieces of clothing and textiles have been produced solely for
wealthy and powerful individuals. The production of these special pieces began
thousands of years ago. Silk, for example, was deemed a luxury product during this era.
In the twelfth century, silks were exported from the East to the Byzantine Empire to be
used for both trade and as diplomatic gifts. In the late fourteenth century, luxury silk
fabrics were woven in Italy and exported to France (Stuard, 2006). Haute couture did not
appear in France until the eighteenth century when Queen Marie Antoinette introduced it
to the French culture (Nudelman, 2009).
Between the fourteenth and seventeenth centuries, during the era of the European
Renaissance, the production and uses for luxury products started to change. Before the
Renaissance, the wealthy ‎and people of high social class were the only ones who
could ‎afford these products, and there were laws that restricted certain products to the
high social class (Han, Nunes, & Drèze, 2010). In the West, the nobility controlled the
use and the distribution of luxury products. Specifically, legislative codes specified the
types of silks that were restricted for imperial manufacture and use (Harris, 2010). In the
Renaissance, luxury products became available among the European upper middle class.
After the industrial revolution of the late eighteenth century, ‎the consumption of
luxury products changed. People started buying not from ‎craftsmen but from factories
that produced large quantities of products (Quickenden & ‎Kover, 2007). Currently,
luxury products are accessible to many groups of people, and ‎they are frequently acquired
1
all over the world. A further discussion of the history of luxury products and brands will
be presented in chapter 2.
Although‎many‎purchase‎luxury‎products‎and‎use‎the‎term‎“luxury”‎frequently,
the term has many meanings, and must be clearly defined in order to assess the topic.
Researchers have defined the‎term‎“luxury”‎in different ways. Some researchers have
related the term to beauty, while others have associated it with high price (Grossman &
Shapiro, 1988; Nueno & Quelch, 1998; Vigneron & Johnson, 1999). In general, the term
“luxury”‎is‎associated‎with‎beauty,‎high price, rarity, and exclusivity. In reference to
rarity‎and‎exclusivity,‎Berry‎(1994)‎argued‎that‎the‎image‎of‎an‎“exclusive”‎luxury‎
product is a deception used to increase consumption. He stressed that neither high price
nor rarity are adequate conditions for a product to‎be‎a‎“luxury.” Furthermore, Berry
(1994) stated that a luxury product falls into one or more of these categories: sustenance
(food or drinks), shelter (home or hotel), clothing (apparel and accessories) and leisure
(entertainment and sporting goods).
Regardless of the definition of luxury, the consumption of luxury products has
increased worldwide over the past few years. The total worth of the luxury products
market was $840 billion in 2004, and by 2010 it had jumped to $1 trillion (Yann, 2010).
The growth widely increased from the period of 1995 to 2007. An 8% growth took place
from 2004 to 2007, which was a period of expansion of the luxury industry into new
markets and countries (Cesare & Gianluigi, 2011). In 2008, because of the worldwide
economic slowdown, sales decreased by 2%. However, brands such as Louis Vuitton,
Hermès, and Chanel experienced increased sales rates despite the crisis (Sherman, 2009).
2
The largest luxury brand markets are in Europe, Japan, and the United States.
According to the Future of Luxury Goods Growth and Valuation Multiples (2009), global
underlying luxury demand has grown at an annual rate of 7 to 8% over the last decade. In
mature markets like Japan, luxury good brands have already penetrated almost all the
population. In China, the consumption of luxury goods are expected to increase from
12% to 29% by 2015 (Bopeng & Jung-Hwan, 2013). Despite the growing levels of
consumption in most countries, the underlying reasons behind consumption behavior may
vary from one culture to another.
Although most research studies (Bian & Forsythe, 2012; Hennigs, et al., 2012;
Park, Ko, & Kim, 2010; Shukla, 2011; Shukla & Purani, 2012) have compared Western
culture with Eastern culture regarding luxury brand consumption, most existing research
does not compare Western with Middle Eastern culture. Therefore, the purpose of this
dissertation is to compare Western and Middle Eastern culture in terms of consumers’
luxury purchase intentions. Previous research studies (Li & Su, 2007; Kazarian, 2011;
Kwok et al., 1992; Triandis, Bontempo, Villareal, Asai, & Lucca, 1988; Tynan, Teresa
Pereira Heath, Ennew, Wang, & Sun, 2010; Zeffane, 2014) have shown that Western
culture is based on individualism, while the Middle Eastern culture is based on
collectivism. Thus, the guiding question of the research is as follows: Do individualist
and collectivist consumers value luxury brands differently? Specifically, functional,
social, and individual values will be the focus of this study.
3
1.1 Background
In this Study, luxury will be defined within the scope of the research. In addition,
the cultures of individualism and collectivism will be differentiated. This section will
discuss different aspects of values, including the functional (quality and uniqueness),
social (social status and conspicuous consumption), and individual (self-identity, selfdirected pleasure, and self-esteem) aspects. In addition, consumer guilt, attitude and
luxury purchase intentions will be discussed.
1.1.1 Luxury
Luxury brands are defined as those brands “whose‎ratio‎of‎functional‎utility‎to‎
price is low while the ratio of intangible‎and‎situational‎utility‎to‎price‎is‎high”‎(Nueno‎&‎
Quelch, 1998, p. 62). This definition compares functional and intangible utilities to price.
Based on this definition, luxury brands have more intangible and situational value than
functional value.
Grossman and Shapiro (1988) defined luxury products based on their social
value. They defined luxury products as goods that are used or shown for social status or
prestige without having a functional purpose. From their point of view, luxury products
are mainly used for social purposes. However, luxury products can be used to show social
status and for a functional purpose at the same time. For example, a woman may
purchase a luxury brand jacket for two purposes: to prevent cold and to show high social
status.
This study investigates luxury brands based on various aspects of their value. The
definition that fits best with this study is that of Vigneron and Johnson (1999). They
defined luxury brands as the highest level of prestigious products based on a number of
4
physical and psychological values. These values include functional, social, and individual
values. This definition and how it fits the scope of this research will be discussed further
in chapter two. This research divides the luxury concept into three main values, and each
value further into sub-values. Functional values include quality and uniqueness. Social
values include social status and conspicuousness. Individual values include self-identity,
self-directed pleasure, and self-esteem. Past literature has included additional luxury
brand values, but this research will concentrate on the most prominent luxury values, as
these values are most relevant to the topic of this study.
1.1.2 Individualism versus collectivism
There are two basic terms that can explain the relationship between people in a
group. The first term is individualism; it emphasizes individual freedom, selfsufficiency, self-orientation, self-expression, self-dependence and control (Hofstede,
1980; Hui & Triandis, 1986). It refers to the culture where people derive pride from their
own accomplishments (Hofstede, 1980). In an individualistic environment, people are
less interested in contributing to social events unless their effort is recognized by others.
The second term is collectivism, and it involves the subordination of personal
interests to the goals of the larger work group with an emphasis on community, society,
or nation (Hofstede, 1980). These interests share, cooperate, and are concerned with
group welfare. People in a collective culture feel responsible for the group and are
oriented towards sharing group awards. They are socially contributory without concern
that others will take advantage of them (Hofstede 1980; Hui & Triandis 1986; Morris,
Davis, and Allene, 1994).
5
Some cultures seem to be more collectivist, while others are more individualistic.
Previous studies (Li & Su, 2007; Kazarian, 2011; Kwok et al., 1992; Triandis et al., 1988;
Tynan et al., 2010; Zeffane, 2014) have shown that Western cultures are more
individualist, while Eastern and Middle Eastern cultures are more collectivist. Hofstede
(1980) found that countries such as the United States, Australia, Canada, and Great
Britain had high scores on the individualism dimension, while China, Pakistan, Thailand,
Venezuela, and Mexico scored low.
Individualistic cultures have advantages and disadvantages. They are more likely
to promote the development of an individual’s self-concept and self-confidence, and to
foster personal responsibility for performance outcomes. In contrast, the opportunity to
place emphasis on personal gain, selfishness, and expediency also exists (Morris et al.,
1994). Individualistic cultures are associated with norms that support a‎person’s‎overall
expressivity. That is, the expression of emotions and feelings is higher in individualistic
cultures than in a collectivistic culture (Matsumoto et al., 2008).
Individualism‎and‎collectivism‎influence‎consumers’‎choices‎of‎the products.
Different values motivate consumers to consume luxury goods. According to Sheth,
Newman & Gross (1991), there are five core values that influence consumer choices of
products: functional, conditional, social, emotional and epistemic values. Hennigs et al.
(2012) have explored four prominent dimensions of luxury value perception: financial,
functional, individual and social (Figure 1).
6
Figure1. Dimensions of luxury value perceptions.
Adapted from: Hennigs, N., Wiedmann, K., Klarmann, C., Strehlau, S., Godey, B.,
Pederzoli, D., & ... Oh, H. (2012). What is the Value of Luxury? A Cross-Cultural
Consumer Perspective. Psychology & Marketing, 29(12), 1018-1034.
In this research study, three main values will be explored: functional (quality and
need for uniqueness), social (social status and conspicuousness), and individual values
(self-identity, self-directed pleasure, and self-esteem). This research will be based on four
studies by Burnett and Lunsford (1994), Hennigs et al. (2012), Shukla and Purani (2012),
and Truong and McColl (2011). The prominent values of the luxury brand perceptions
explored by Hennigs et al. (2012) are financial, functional, individual, and social values.
In Hennigs et al.’s‎(2012)‎results, the financial value had less‎impact‎on‎the‎consumers’‎
perception toward luxury. Specifically, their study findings show that consumers from the
United States do not associate luxury brands with financial aspects. Thus, the financial
value has been eliminated from this study. Hennigs et al. (2012) examined the usability,
quality, and uniqueness values under the functional value. For the current study, the
quality and uniqueness values will be examined because the usability value did not show
7
a significant‎result‎in‎Hennigs‎et‎al.’s‎past‎study. Hennigs et al‎. also examined social
dimensions which includes consciousness and status. The result showed how those
dimensions were at the moderate level for most countries. Thus, the same values of social
dimension will be tested in this study. For the individual value, the self-identity value
has been examined by Hennigs et al. They found varied affects among different cultures.
Truong and McColl (2011) tested self-directed pleasure and self-esteem, and results
showed that self-directed pleasure is a superior motivation for consumers in buying
luxury products. In addition, self-esteem, which is an important concept in consumer
behavior and rarely tested in luxury studies, strongly relates to both self-directed pleasure
and the purchase of luxury products. Thus, the value of self-esteem will be tested in this
study. Individualism‎and‎collectivism‎were‎tested‎in‎Shukla‎and‎Purani’s‎(2012)‎study,‎
and the results showed the impact on luxury product consumption. The consumers in
collectivist markets measured the value of a luxury brand different from consumers in
individualistic markets. Lastly, the effect of consumer guilt will be addressed in this
research‎based‎on‎Burnett‎and‎Lunsford’s‎(1994)‎research.‎They‎found‎that‎consumer‎
guilt showed a direct impact on the consumer decision-making process.
1.1.3 Functional value
In general, a product or service is designed to provide a particular function
(Wiedmann, Hennigs, & Siebels, 2009). The functional value of a product refers to the
aspects that make it functional, such as price, quality, uniqueness, and usability. This
functional value represents the perceived utility of a product characteristic; it refers to
basic product benefits, such as quality, uniqueness, usability, reliability, and durability
(Sheth, Newman, & Gross, 1991). Functional value also represents the ability of the
8
product to perform its functional, utilitarian, or physical purposes. In fact, consumers
expect a luxury product to be functional, of good quality, and unique enough to satisfy
their need for uniqueness (Wiedmann et al., 2009).
In this research, quality and
uniqueness values will be the main dimensions of functional value.
Quality value
Quality is one of the basic benefits and functional aspect that can be seen in a
luxury product. Luxury brand consumers believe that luxury brands possess high quality.
Luxury brand products should have a high quality that sets them apart from other nonluxury brands. Cesare and Gianluigi (2011) believed that quality is the main attribute
relative to luxury goods, followed by craftsmanship, design, and aesthetic value.
Particularly in developed markets, consumers purchase luxury products for their quality
and functional values (Shukla, 2012). Gentry, Putrevu, Shultz, and Commuri (2001)
found that the main reason why consumers buy luxury brands is due to their high quality.
However, quality is still considered one of the main reasons‎for‎a‎consumer’s‎satisfaction
or dissatisfaction regarding a product. To better understand the measurement of quality,
quality also must be defined.
Quality is “the standard of something as measured against other things of a similar
kind; the degree of excellence of something: an improvement in product quality”
(Oxford, p. 634). The International Standards Organization defines quality as the overall
characteristic of a whole that has the capacity to satisfy the direct and tacit needs of
consumers (Brown & Rice, 1998). In other words, the quality refers to what extent a
product has satisfied its consumers.
9
According to Brown and Rice (1998), the quality of a luxury apparel product has
two dimensions: a physical dimension that includes the design, material, finish methods,
etc., and a behavioral dimension that indicates what the item can achieve. Garvin (1983)
measured quality for a product in general by counting the incidence internal errors that
occur in the factory, and external errors that happen in the field. Moreover, the quality of
the luxury product should meet the consumer’s high level of satisfaction since high
quality is associated with a high price (Bian &Moutinho, 2009).
Need for uniqueness
Need for uniqueness is defined as “the trait of pursuing differences relative to
others through the acquisition, utilization, and disposition of consumer goods for the
purpose of developing and enhancing one’s self-image and social image” (Tian, Bearden,
& Hunter, 2001, p. 52). Tian & McKenzie, (2001)‎defined‎consumers’‎need‎for‎
uniqueness as one’s desire to engage in consumer behaviors that avoid conformity by
making creative, unpopular choices and choices that are not similar to the choices of
others. More simply, Snyder and Fromkin (1980) defined the need for uniqueness as a
desire to be different than others. Researchers who have investigated the need for
uniqueness believe that those with a higher level of a need for uniqueness have some
features that differentiate them from others who do not have this need. They usually
look, think, and respond differently, and they are willing to take risks to achieve their
need-for-uniqueness goals.
An abundance of evidence suggests that consumers have a desire to differentiate
themselves from others in‎an‎act‎of‎“avoiding similarity” (Lee & Leizerovici, 2011).
Being different from others or becoming distinctive in a large group is often a result of
10
the need for uniqueness. In their theory about people’s need for uniqueness, Snyder and
Fromkin (1977) assumed that uniqueness motivations are motivated by people’s
perceptions of how much they correspond to others. People react and dress differently to
maintain an appropriate level of uniqueness from others. Conversely, “when people feel
very similar to others, they will raise those behaviors and activities that express their
distinction”‎(Ruvio, 2008, p. 446). Snyder and Fromkin (1977) concluded that the desire
for uniqueness is restricted by the need for social approval.
The need for uniqueness motivates retailers to display different styles with their
products, especially in the fashion and apparel markets. Such stores have reduced
apparel with similar designs or similar products, which once prevailed in this market, and
have revised different apparel styles to achieve uniqueness. The display of a variety of
consumer goods may be the primary result of the desire for uniqueness: the desire to look
different from other people. To avoid similarity, consumers actively seek out different
and rare products to achieve a level of uniqueness.
1.1.4 Social value
This term refers to the perceived utility that a person acquires from consuming a
product or service along with a group of people, such as prestige or conspicuousness that
affects an individual’s decision to purchase a luxury product (Bearden & Etzel, 1982;
Kim, 1998; Vigneron & Johnson, 1999). One’s‎social group also affects the person’s
evaluation of the product itself. Social groups assign separate social meanings to
different luxury products. For example, a lady carrying a Gucci handbag, which is worth
$695, can project something different about her social standing than a lady carring a
Coach bag worth $268 (Han, Nunes, & Drèze, 2010). The price and the association
11
between a brand and its users give a luxury product its social meaning (Muniz &
O’Guinn, 2001).
Social status value
In the past, particular products were reserved for high-class people; lower and
middle classes did not have access to such high-priced items. According to Han et al.
(2010), there were laws in some countries, especially in East Asia, that specified in detail
what each group could wear, including the fabrics, colors, and types of adornment.
Nowadays, people can wear what they like as long as they can afford it. In fact, people
want to present their social status or to associate themselves with a higher social group by
consciously consuming. In this research, two dimensions of social value will be
discussed: social status and conspicuous consumption.
An individual’s selection of brand names is strongly related to his or her social
status. The theory of social identity states that people seek either to associate or to
disassociate themselves from certain categories of people. Clothing is the main way to
achieve this end. People dress to associate and be part of the upper class or specific
political groups (Tajfel & Turner, 1986).
According to Han et al. (2010), some consumers are called‎“poseurs” (p. 17),
which is the‎French‎word‎for‎a‎“person‎who‎pretends‎to‎be‎what‎he‎or‎she‎is‎not.”‎‎These
people are highly motivated to purchase luxuries for the sole purpose of status. Some
bottom-tier consumers want to buy luxury brands so they will appear to be wealthy
people (Ordabeyeva & Chandon, 2011). Conversely, others have argued that luxury
products have to be viewed from within their social and economic framework. The status
of a luxury product depends on both the product’s features and the consumer’s social and
12
economic status. To some extent, conspicuous consumption has increased among
bottom-tier consumers (Ordabeyeva & Chandon, 2011).
Conspicuous value
Conspicuous value is the other dimension of social value. Status consumption
and conspicuous consumption are related and are also separated to some extent. They are
related to the dimensions of the consumers’‎motivational behavior towards products.
However, each construct is unique and has distinctive characteristics that attract the
consumers (O’Cass & McEwen, 2004).
In most contemporary research studies, the term “conspicuous consumption” is
used to refer to luxury consumptions. Generally, the term is related to wealth, leisure
class, and a display of social status. In 1899, Thorstein Veblen used the term
“conspicuous consumption” to describe the acquisition and display of possessions with
the intention of gaining social status. Veblen (1899) developed a concept of conspicuous
consumption that later became the basis of leisure class and conspicuous consumption
research. He established the leisure class as a standard and described conformity for all
classes. The leisure class is the class of wealthy people or those who have inherited the
highest social status, and they make an effort to keep and confirm their status (1899).
Even before Veblen, Smith (1759) believed that the need for social status as what led
people to display their possessions and consume conspicuously (Majic & Majic, 2011).
In contrast, using the recent case of Gucci vs. Guess, Majic and Majic (2011) have shown
that‎consumers‎do‎not‎conform‎completely‎with‎Veblen’s‎theory‎of‎conspicuous‎
consumption. These authors believe that the theory has to be readapted based on
psychological and social factors that affect consumers’ decisions in purchasing luxury
13
products to confirm social status. Counterfeit products that are offered at lower prices are
the best example. In fact, conspicuous consumption is not limited to just wealthy and
high class people; recently, conspicuous consumption has increased among the lower and
middle class.
Higher equality increases conspicuous consumption among bottom-tier
consumers because it allows them to rise above more people and increases their
satisfaction with their level of possessions. Both the possession gap and the position gain
influence conspicuous spending decision (Ordabeyeva & Chandon, 2011). Scott, Mende,
and Bolton (2013) concluded that conspicuous consumption is an alternative or a
surrogate for actual wealth. That is, it enhances both the wealth effect and impressions of
competence. Increasing equality is the main reason that encourages bottom-tier
consumers to buy luxury products and spend on conspicuous consumption to allow them
to get ahead of other people. At the same time, increasing equality reduces spending on
inconspicuous consumption because it raises the consumers’‎level‎of‎satisfaction‎toward‎
their current level of possessions (Ordabayeva & Chandon, 2011). For example, a
woman might purchase a luxury handbag but have an old dishwasher from a little known
brand at home simply because the dishwasher does not appear in public (Yajin &
Griskevicius, 2014).
Conspicuous consumption not only encourages consumers to consume luxury
products that appear to others but also promotes the brand’s prominence, which is
defined as “the extent to which a product has visible markings that help ensure observers
recognize the brand” (Han et al., 2010). Han et al. (2010) showed that people with a high
14
need for status and a desire to be associated with the upper class are more likely to
consume luxury products with a visibly apparent and recognizable brand.
1.1.5 Individual value
The individual value addresses values related to self and personal issues. It
focuses on a consumer’s personal orientation toward a luxury product. These internal
motivations are self-reward, a person’s attitude, personality, self-pleasure, self-esteem,
self-identity, originality, and perfection. In this dissertation, self-identity, self-directed
pleasure, and self-esteem will be discussed.
Self-identity
Self-identity is one of the psychological variables that relates to luxury brand
consumption, and it can be defined as the “relatively‎enduring‎characteristics‎that‎people
ascribe‎to‎themselves”‎(Sparks & Guthrie, 1998, p. 1396). The term “self-identity”
includes the total of self, identity, and scheme that compose one’s sense of self (Markus,
1977). Self-identity includes one’s preferences or attitudes; it is the labels people use to
describe‎themselves”‎(Biddle,‎Bank,‎&‎Slavings,‎1987,‎p.‎326). According to Smith,
Terry, Manstead, Louis, Kotterman, and Wolfs (2008), self-identity is the salient part of
one’s self. Overall, self-identity reflects people’s beliefs about who they are. Thoits and
Virshup (1997) reported that self-identity has three main components: 1) self-identity,
which reflects one’s characteristics, 2) role identity, which refers to a person who
performs a particular social role, and 3) social identity, which identifies a person within a
group of people. An individual’s decision to purchase a luxury brand is affected by his or
her self-identity.
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Self-identity is strongly related to human behavior. Researchers agree that selfidentity is a result of social interaction and influences individual behavior (Wylie, 1979;
Rosenberg, 1979). In a psychological and sociological framework, self-identity is an
important part of the self’s‎behavior. Self-identity and prior behavior both affect a
person’s behavior intention. In fact, repeated behavior becomes a part of one’s selfidentity (Chang et al., 1988). Therefore, based on Chang et‎al.’s findings (1988), the
repeated behavior of luxury purchases could become part of an individual’s identity. In
contrast, self-identity influences one’s decision to either purchase or not to purchase
luxury brands.
Self-identity is related to self-attitude. Attitude is a “lasting general evaluation of
people (including oneself), objects, advertisements, or issues” (Solomon, 2011, p. 256).
Self-identity is an antecedent of attitude. Both ethical commitments and self-identity
measurements play a role in the prediction of attitude and behavioral intention (Shaw &
Shiu, 2002). Attitude and behavior are strongly related. For instance, the theory of
planned behavior indicates that human behavior is not spontaneous but that action is a
result of one’s‎attitudes, norms, and perception (Ajzen, 1991).
Self-directed pleasure
Self-directed pleasure is defined as an intense and essential element that people
perceive to create their own hedonic experiences (Csikszentmihalyi, 1990). Simply, selfdirected pleasure is “the feelings of bliss, contentment, and ecstasy for the‎self”‎(Tsai,‎
2005, p. 433). There are two kinds of directed-pleasure: self-directed pleasure that
represents self-bliss, happiness, and ecstasy; and social-directed pleasure, which is related
16
to caring for and loving others. Self- and social-directed pleasures are both values that
consumers satisfy by acquiring luxuries.
Luxury brands promote happiness for some consumers. These individuals
consume luxury products not for the status or prestige that may be associated with them;
instead, they seek self-pleasure. Most luxury consumers who spend their disposable
income on luxuries are motivated mainly by self-directed pleasure (Silverstein & Fiske,
2005); they seek not just to acquire pleasure but also to escape pain. The pleasant
feelings experienced when acquiring an item from a luxury brand vary from person to
person.
Self-esteem
Self-esteem is an overall evaluation of one’s self-concept (Leonard, Beauvais, &
Sholl, 1995). It refers to the extent to which people like, value, accept, and respect
themselves on a global level (Rosenberg, 1979). Self-esteem is also defined as a mixture
of feelings of self-amusement, self-worth, self-respect, and self-acceptance (Brown,
1993). It is the degree of positivity of a person’s self-concept (Solomon, 2011). Since
self-esteem is an overall evaluation of one’s self-concept, this evaluation could be
positive or negative.
A positive evaluation refers to high self-esteem, whereas a negative evaluation
indicates low self-esteem. In general, high self-esteem is associated with positive
outcomes, such as life satisfaction, happiness, adjustment, and academic success, whereas
low self-esteem is associated with stress, anxiety, depression, behavioral problems,
deviation, and academic failure (Harter, 1987; Huebner, 1991; Masten & Garmezy,
1985). People with low self-esteem are not expected to perform well. In addition, both
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consumers with high and low self-esteem are predicted to consume luxuries. High selfesteem consumers are likely to purchase luxury brands because they think that they
deserve them. In contrast, consumers with low self-esteem typically purchase luxury
brands in order to enhance their self-esteem or to avoid rejection (Mandel and Smeesters,
2008). Mandel and Smeesters (2008) assumed that individuals with low self-esteem
would show higher consumption levels than other consumers with high self-esteem. In
addition, compulsive buyers showed lower self-esteem than other consumers; they
seemed to try to enhance their self-esteem by spending money (Faber & O’Guinn, 1992).
1.1.6 Consumer guilt
Guilt refers to an individual’s “unpleasant emotional state associated with
possible objection to his or her actions, inactions, circumstances, or intentions”
(Baumeister, Stillwell, & Heatherton, 1994, p. 245). Guilt can be defined as an emotional
situation involving penitence, remorse, self-blame, and self-punishment (Huhmann &
Brotherton, 1997). Guilt also is defined as an emotional feeling associated with remorse,
regret, and empathic concern (Dahl et al., 2003). Consumer guilt is a type of guilt that
relates specifically with decision situations regarding consumption. In general, guilt is a
negative evaluation and its associated emotions that occur after a specific behavior
(Özhan‎&‎Kazançoğlu,‎2010). It is related to impulsive, compulsive, and hedonic
consumption (Puri‎1996;‎O’Guinn‎& Faber, 1989; Okada, 2005).
Consumer feelings of guilt are categorized into three types according to the period
of time in which they occur: anticipatory, reactive, and proceeding guilt. Anticipatory
guilt is experienced when one contemplates a purchase; it influences the decision before
it is even made. Reactive guilt occurs after the transaction has been made. Finally,
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proceeding guilt occurs at the time of purchase (Lin & Xia, 2009; Özhan‎&‎Kazançoğlu,‎
2010).
Consumer guilt is related to luxury brand consumption due to the high price of
these items. An individual who spends too much money on a piece of luxury may start to
blame himself or herself. People feel guilty after they obtain luxury products because
they have just spent a lot of money on non-practical items (Kivetz & Simonson, 2002).
1.1.7 Attitude and Luxury purchase intention
Attitude
Attitude is a complex term that includes one’s beliefs, feelings, perceptions, and
actions. It can be used‎to‎determine‎one’s‎behavior because attitude directly affects
intention, which is directly influenced by behavior (Ajzen & Fishbein, 1980). Attitude is
a lasting general evaluation of people, objects, and issues (Solomon, 2011). It is also
defined as a salient belief toward a certain behavior and the evaluation of those beliefs.
This evaluation continues over time (Shim, Morris, & Morgan, 1989). Consumers’‎
positive attitudes toward luxury brands are affected by their social and psychological
experiences with luxuries, which can lead to positive purchase intentions and behaviors.
Attitudes can be formed in different ways. Based on literature, attitudes may be
formed towards a product due to either classical conditioning or instrumental
conditioning. Classical conditioning involves placing a neutral signal before a reaction is
taken. It focuses on automatic behaviors. Instrumental conditioning involves applying
reconciliation or punishment after a behavior. Given the complexity of attitude,
researchers may apply multiattribute attitude model to understand the concept. This
19
model assumes that a consumer's attitude toward an object depends on the person's
beliefs about its attributes (Solomon, 2011).
Attitude toward luxury products is strongly affected by culture and social norms.
Yim et al. (2014) have developed a model that employs the exposure to normative
interpersonal influence and brand consciousness to investigate the relationship between
cultural influences and consumer attitudes toward luxury products. The results showed
that the external parts of the model which include the cultural dimension constructs
(horizontal individualism, vertical individualism, horizontal collectivism, and vertical
collectivism) are prior to normative interpersonal influence. It is also an antecedent to the
internal part of the model in which normative interpersonal influence the formation of
consumer attitudes toward luxury brands.
Luxury purchase intention
Purchase intention is the willingness to buy a product. It is the connection point
between an attitude and a purchase behavior (Sangyoung & Sungyoung, 1999). Purchase
intention is more effective in predicting purchase behavior than attitude because
consumers experience a more direct effect from purchase intention than from attitude
(Koh, 2013). Purchase intention is the last step in the model of attitude toward
purchasing, which measures a‎person’s attitude toward the act of buying instead of the
attitude toward the product itself (Solomon, 2011). To determine a consumers’‎intention‎
toward luxury brands, their attitude toward the concept of luxury must also be
considered.
Cesare and Gianluigi (2011) have investigated the determinants of purchase
intention for fashion luxury goods in the Italian market. They concluded that consumers
20
purchase luxury fashion products basically to match their lifestyle, thus pleasing their
internal motivations (Cesare and Gianluigi, 2011). The pyramid map resulting from their
data demonstrates that self-confidence and self-fulfillment are the basic latent final values
when purchasing luxury products. Their research, however, examined the luxury
consumption in the Italian market, which represents one of the largest and most mature
markets for fashion luxury products. Hence, the result could be different if their study
was conducted in another country.
1.2 Summary
In this chapter, the definition of luxury was provided. In addition, the two main
dimensions of culture (individualism and collectivism) were described. The four values
of a luxury brand were explained. Lastly, social guilt, attitude and luxury purchase
intention were discussed.
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CHAPTER 2: THE LITERATURE THAT INFORMS THE RESEARCH
As stated in the previous chapter, the main research question of this dissertation is:
Do individualist and collectivist consumers value luxury brands differently? Based on
this research question, this chapter will discuss research studies related to six core
concepts: 1.) Luxury 2.) Individualism versus collectivism 3.) Functional value (quality
and uniqueness 4.) Social value (social status and conspicuousness), 5.) Individual value
(self-identity, self-directed pleasure, and self-esteem) and 6.) Consumer guilt. In addition,
attitude and luxury purchase intention will be addressed.
This chapter begins with an overview of luxury topics. I summarize the literature
related to luxury in general and discuss the scope of the specific luxury definition that
will be applied in this study. In relation to this, the literature relevant to individualism and
collectivism is explored. Then, each luxury value is reviewed in depth, including
functional, social, and individual value. Lastly, Consumers’‎guilt‎literature‎is‎discussed
and attitude toward luxury products and luxury purchase intention are presented. By
reviewing these core concepts, this chapter highlights gaps between the existing literature
and specific areas that need to be investigated.
2.1 Luxury
Historically, luxury brand stores were founded more than 100 years ago and
were ‎originally owned and managed by families. Thomas Burberry established Burberry
in 1856 as a family store that he owned and managed ‎(Collins, 2009). Another familyowned and managed store is Gucci, which was founded in Florence in 1921
(http://www.gucci.com). ‎In the 1980s, three luxury designers, Bernard ‎Arnault, Francois
Pinault, and Johann Rupert, acquired many family-owned stores in France. Thus, ‎three
22
luxury brand names were established: LVMH, Kering, and Richemont. By
establishing ‎those luxury brands, multinational corporations within the luxury market
became prevalent (Som & Blanckaert, 2015). ‎In the late twentieth century, luxury
products became easily accessible for consumers ‎across the world (Som & Blanckaert,
2015). Although luxury brands are consumed widely across different ‎cultures, the term
luxury may be defined differently. ‎
Over the last two decades, researchers have studied luxury brands from different
perspectives.‎‎As‎discussed‎in‎the‎introduction,‎the‎term‎“luxury”‎has‎many definitions.
Each definition highlights a specific aspect of luxury. Some definitions emphasize
beauty, whereas others emphasize expansiveness (Berry, 1994). This research applies the
definition of Vigneron and Johnson (1999), in which a luxury brand is the highest level of
prestigious products that also includes a number of physical and psychological values.
Since this definition addresses the gap between the two previous definitions:
Grossman and Shapiro (1988) and Nueno and Quelch (1998) definitions, it will be
applied in this study. Nueno and Quelch (1998) based their definition on the intangible
and situational values of luxury brands. On the other hand, Grossman and Shapiro (1988)
based their definition of luxury on social values. Indeed, Vigneron and Johnsons (1999)
definition includes more luxury values, which make it suitable for this study, as this
research will assess luxury values in a more holistic view. This definition is also applied
in this study because it includes the social value scope of luxury, which is relevant to the
social orientation of the college students being sampled in this research (Weidman,
1989).
23
Based on this definition, a luxury brand is at the highest level of prestigious
products. That means that the luxury brands examined in this study are ranked at the
highest level of status compared with other products. According to "Luxury Group
International" (2012), the top luxury clothing brands are Gucci, Louis Vuitton, Burberry,
Chanel, Versace, Prada, Dior, Alexander McQueen, Giorgio Armani, Ralph Lauren,
Hermes, Dolce & Gabbana, Salvatore Ferragamo, Dunhill, and Calvin Klein. Based on
this ranking and the first part of the definition, these brands along with others, were listed
for participants to assess in the study.
This definition was applied successfully in several research studies in the past (Bian
& Forsythe, 2012; Hennigs et al., 2012; Park, Rabolt, & Jeon, 2008). Park et al. (2008)
examined different physical and psychological dimensions based on this definition. The
authors assessed purchasing frequency, conformity, consumer ethnocentrism, social
recognition, and pocket money. Hennigs et al. (2012) based their study on this definition
to investigate cross cultural luxury consumption. The luxury values that were
investigated were financial, functional, individual, and social values. For instance, Gucci
as a luxury brand has numerous physical and psychological values. It has a good history,
high quality, country of origin, a charismatic founder, and celebrity associations
(DeFanti, Bird, & Caldwell, 2014). The physical and psychological values that will be
highlighted in this dissertation research are functional, social, and individual values.
When we buy a product, either we buy it because we like it or because others will
like it. External and internal reasons motivate consumers to purchase luxury products
(Vigneron & Johnson, 2004), External motivations are related to economic status and
social aspects. Factors related to economic motivation include increasing disposable
24
income, reducing unemployment rates, decreasing production costs, the world-wide
increase of female employment, and growing numbers of wealthy families in different
countries (Yann, 2010). The consumers want to be socially exclusive and be a part of the
richest social class or at least emulate that class. In addition, they may want to attract
people and show their wealth (Han et al., 2010). According to Vigneron and Johnson
(2004), internal motivations related to luxury consumption, like self-reward, are based on
emotions and subjective feelings. Internal motivations are also related to the person's
attitude, personality, pleasure, self-esteem, originality, and perfectionism.
All the previously mentioned motivations for purchasing luxury products may
differ between males and females. Gender tends to look at fashion from different
perspectives. Nicola and Karin (2013) have studied the role of gender in luxury brand
consumption, because female luxury brands have higher prices than those of male luxury
brands. They found that luxury products made specifically for women provide more
uniqueness and status than non-luxury products. They observed differences in product
designs based on the desires of males and females. Females have the desire of uniqueness
while males have desire of attracting the other gender. In addition, consumer purchase
intentions are expected to differ across cultures (Nicola & Karin, 2013).
Although several studies about luxury consumption have been conducted, few studies
have discussed the concept in the framework of the culture feature: individualism and
collectivism (Bian & Forsythe, 2012; Hennigs, et al., 2012; Park, Ko, & Kim, 2010;
Shukla, 2011; Shukla & Purani, 2012). Indeed, there is need to understand luxury in the
context of culture, as there may be distinct differences across cultures. The next section
discusses the literature relevant to the concepts of individualism and collectivism.
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2.2 Individualism and Collectivism
To understand the differentiation between collectivism and individualism and their
relation to luxury consumption, previous studies have to be explored. Previous studies (Li
& Su, 2007; Kazarian, 2011; Kwok et al., 1992; Triandis, Bontempo, Villareal, Asai, &
Lucca, 1988; Tynan, Teresa Pereira Heath, Ennew, Wang, & Sun, 2010; Zeffane, 2014)
showed that some cultures are collectivism while others are individualism. Even within
one culture, people can be collectivist or individualistic. Hui and Villareal (1989) found
that collectivism and individualism are clearly distinguished even within one culture. In
their comparison study between the United States and Hong Kong, they concluded that
collectivist people have a high need for affiliation, nurturance, and succorance. At the
same time, they have a low need for autonomy, which is in complete contrast with
individualistic people.
There is also a difference between urban and rural people both within one culture
and across different cultures. In their correlation of American and Kenyan society, Ma &
Schoeneman (1997) pointed out that people from customary, collectivist Kenyan
societies would have plans toward oneself with more social parts than would those from
individualized American society. The thoughts toward oneself of urbanized and educated
Kenyans would be less social than those of conventional Kenyans. The results suggested
that Kenyan attitudes are more aggregate and less individualized than Western or
American thoughts toward oneself. Moreover, elements of urbanization, improvement,
modernization, and instruction may impact the plans toward oneself of Kenyans living in
Nairobi and bring about a diminished level of collectivism (Ma & Schoeneman, 1997).
26
Lee and Ro (1992) showed how consumers from collectivist and individualist
cultures value products differently. They compared Korean consumers, which represent
collectivism, and American consumers, which represent individualism cultures. This
study showed that collectivist culture consumers consider the importance of family in
their evaluation of the products. In addition, they tend to be more family-oriented than
individualistic consumers (Lee and Ro, 1992). Based on this study, their decision to
either‎buy‎or‎not‎to‎buy‎luxury‎product‎mostly‎depends‎on‎others’‎points‎of‎view,‎
including their family, friends, or society. If others value luxury products, then they are
more likely to purchase them. In individualistic cultures, consumers are more likely to
purchase luxury products depending on their personal points of view. They are more
likely to purchase luxury products to satisfy psychological aspects. Thus, collectivist
cultures seek different values from luxury product consumption compared to individualist
cultures (Lee and Ro, 1992).
Morris et al. (1994) concluded that individualism-collectivism is a salient
cultural dimension across societies. They provided evidence from three countries U.S,
South Africa and Portugal. The measurement methods used by Morris et al. were adapted
from Hofstede's (1980) societal individualism-collectivism scale and Earley's (1989)
collectivism and social loafing scale. The organizational level of individualismcollectivism was observed by comparison to Hofstede's (1980) results at a societal level.
Hofstede (1980) found the United States to be the most individualistic culture, followed
by South Africa and Portugal. The results of the Morris et al. (1994) study showed the
importance‎of‎the‎collective‎impact‎on‎the‎attitudes‎and‎behaviors‎of‎an‎organization’s‎
27
employees. The results also indicated the role of individualism-collectivism in
understanding entrepreneurial behavior.
Recently, Muk et al. (2014) explored cultural differences between individualist and
collectivist cultures in terms of their intentions to like a brand page. Young American
participants represent individualism, while Korean participants represent collectivist
consumers. Researchers applied the theory of planned behavior to study the relationships
between‎consumers’‎attitudes,‎perceived‎behavioral‎control,‎social‎influence,‎intentions‎
to join, and intentions to purchase. The findings showed that collectivism and
individualism impact consumers' intention (Muk et al., 2014). In a collectivist society,
there is a strong influence of attitudes, social influence, and perceived behavioral control
on brand fans than in individualist one.
Although the studies reviewed examined many cultures, none assess Saudi cultures
versus American cultures. This is especially important as Saudi cultures have a
propensity toward luxury products (Larenaudie, 2008). Although Muk et al. (2014)
addressed the gap between culture and purchase intention, it does not examine brand
values. Thus, there is a need to study brand value perceptions based on the cultural
differences of individualism versus collectivism. The following section will discuss
luxury brand values and cultural differences.
2.3 Luxury values
2.3.1 Functional value
Some consumers purchase luxury brands mainly for their functional value.
Functional values include usability, quality and uniqueness values (Hennigs et al. 2012).
The high quality of the products is one of the main functional values. Indeed, it is hard to
28
imagine a luxury product with little or no quality. Although usability is a functional
value, it is not as notable as quality and uniqueness. For example, consumers may
purchase some luxury items without considering their usability. In this section, quality
and uniqueness will be discussed as functional
Quality value
Quality is one of the main dimensions that characterizes luxury products and attracts
people to purchase them. It is usually related to the high price. Thus, there is a positive
relationship between quality and cost. The relation between price and quality is readily
apparent in luxury products (Stamper, Sharp & Donnell, 1986). According to Brucks,
Zeithaml, and Naylor (2000), it was observed that consumers use the price of a product to
determine‎the‎product’s‎quality.‎Beverland‎(2005)‎emphasized‎that price and quality goes
hand in hand. Thus, luxury brands are characterized by a high price and excellent quality.
Lalwani and Shavitt (2013) concluded that there was a strong relationship between price
and quality, and consumers have a great tendency to use price information to judge the
quality of a product.
Huang and Tan (2007) conducted a study to determine the factors that affect
apparel design and quality in Taiwan. They found that fashion sensitivity, material
application ability, color sensitivity, fashion trend, fashion market positioning, and
management are factors that impact the quality of apparel design. Likewise, fashion style,
cloth quality, cutting quality, discount, and personal favorites are key factors that affect a
consumer’s choice of apparel goods. Market analysis and market development are very
important to ensuring that a product will be ranked highly by consumers. From this study,
we can observe how important quality is in the apparel sector.
29
Perry and Kyriakaki (2014) have examined the decision-making process used by
luxury‎fashion‎consumers‎in‎Greece,‎applying‎Sheth’s‎(1981)‎model.‎They‎found‎that‎
quality is the most important criteria in selecting suppliers and evaluating merchandise.
Other important factors are design, style, fashionability, brand reputation, and
appropriateness. This study provided insights into the decision-making process of luxury
fashion consumers and illustrated the importance of quality as an essential factor for
making purchase decisions for fashion luxury products.
Need for uniqueness
The other dimension of functional value is uniqueness. Consumers purchase luxury
products mainly because they are looking for uniqueness. Researchers have studied the
relationship between luxury brands and the need for uniqueness (Miremadi, Fotoohi,
Sadeh, Tabrizi, & Javidigholipourmashhad, 2011). Due to their high price and rarity,
consumers conclude that luxury products will satisfy their needs for uniqueness and
differentiate them from others. Previous research studies also have shown that people
with a high need for uniqueness favor rare, innovative, and non-traditional items (Lynn &
Snyder, 2002; Workman & Caldwell, 2007).
The need for uniqueness is restricted by social norms. Consumers want to be
different, but at the same time, they need to be socially accepted. Ruvio (2008) studied
the‎role‎of‎consumers’‎need‎for‎uniqueness,‎concentrating‎on‎the‎role‎of‎need‎for‎
uniqueness for fashion consumers. The result provided a new theoretical view of the
interaction‎between‎consumers’‎needs‎for‎uniqueness‎and‎social‎distinction,‎supporting‎
the concept that consumers want to express their uniqueness in a safe way without
damaging their social norms.
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Consumers differ in their desires for uniqueness. The desire to engage in consumer
behaviors that avoid conformity is not same for all consumers. Fashion opinion leaders
are expected to purchase luxury brands to satisfy their desire for uniqueness. Workman
and Kidd (2000) have studied the need for uniqueness among fashion groups. They
developed a need for uniqueness scale to determine the characteristics of fashion
consumer groups. The purpose of their study was to identify differences between fashion
opinion leaders, fashion innovators, innovative communicators, and fashion followers in
their needs for uniqueness. The result showed that there was a significant difference
between fashion groups. The greater uniqueness desire was exhibited in fashion change
agents (Workman and Kidd, 2000). Although this study showed various levels of need
for uniqueness among different consumers, it did not illustrate their desire to purchase
high-priced and luxury goods. Further study of consumers' needs for uniqueness can
provide a better understanding of consumer behavior, as it relates to their motivation
towards luxury goods.
The relationship between need for uniqueness and luxury brand intention have been
studied specifically. Miremadi et al. (2011) showed the impact of need for uniqueness on
purchasing luxury brands intention in Iran and the United Arab Emirates. They
considered creativity, unpopular choice, and avoidance of similarity as three dimensions
of uniqueness. They found that consumers wanted to express their uniqueness without
losing social assimilations. They also showed interrelationships among the main three
dimensions of need for uniqueness. Although this study compares two different cultures
in terms of their need for uniqueness, both cultures represent collectivist societies.
31
Moreover, there is need to address the gap and compare need for uniqueness between
individualistic and collectivist cultures.
Since the expression of uniqueness should occur within social norms, social value
has to be determined. Although these studies discussed the relationship between
functional value and luxury brands consumption, there is still a need to discuss the
relationship between social value and luxury brand consumption. The next section will
review the literature of social value.
2.3.2 Social value
Social status value
Several studies have investigated the relation between social status and luxury
brands. Such studies explore the effect of social status on individuals' preferences of
luxury brands (Han et al., 2010). Some research studies, however, focus on how people
look for new social status and prestige from luxury brands (Han et al., 2010; Nelissen &
Meijers, 2011; Hennigs et al., 2012).
Loureiro and Araújo (2014) have conducted a study in Brazil to examine
consumer’s‎individual‎and‎social‎luxury‎values. Specifically, how social luxury values
impact the consumers' attitude and behavior. They also investigated consumer’s intention
to pay more for luxury clothing. The results showed that social values have a positive
impact on subjective norms and have a negative influence on behavioral control. Thus,
consumers who look for social status may be motivated to buy luxury products. They also
strongly recommend others to purchase luxury goods.
Recently, Hennigs et al. (2012) divided consumers into four clusters in terms of
their luxury values: the luxury lovers, the status-seeking hedonists, the satisfied
32
unpretentious, and the rational functionalists (figure 2). This cross-culture study
investigated the different values of luxury among consumers from ten countries. The
luxury lovers and the status-seeking hedonists showed high rates for social values. Indian,
Japanese, American, and French consumers placed the most importance on social value,
while Spanish consumers placed less importance on social value. Accordingly, luxury
consumption is either conspicuous or inconspicuous.
Figure 2. Cluster comparison
Adabted from: Hennigs, N., Wiedmann, K., Klarmann, C., Strehlau, S., Godey, B.,
Pederzoli, D., & ... Oh, H. (2012). What is the Value of Luxury? A Cross-Cultural
Consumer Perspective. Psychology & Marketing, 29(12), 1018-1034.
Conspicuous value
Although status consumption and conspicuous consumption seem to have the same
meaning,‎O’Cass‎and‎McEwen (2004) found that status consumption and conspicuous
consumption‎are‎related‎but‎separate.‎They‎are‎both‎related‎to‎dimensions‎of‎consumers’‎
motivational behavior toward products; however, each construct is unique and has
33
distinctive characteristics that attract consumers. Beside the differentiation in
conspicuous consumption among different social class levels, there is variation across
cultures.
Indeed, there is a relation between conspicuous consumption and individualism.
However, there is also evidence of conspicuous consumption in collectivism cultures.
According to The Future of Luxury Goods: Growth and Valuation Multiples (2009), in
mature markets like Japan, luxury goods brands have already penetrated virtually 100%
of the population. In China, consumption of luxury goods is projected to rise from 12% in
2007 to 29% by 2015 (Bopeng & Jung-Hwan, 2013). In fact, both Japan and China are
considered to be collectivist cultures; however, other studies had contrasting results.
Souiden et al. (2011) revealed that conspicuous consumption was higher in individualistic
cultures (Canada) than in collectivist cultures (Tunisia).
Each individual consumes conspicuously for different reasons. Kastanakis and
Balabanis (2014) believe that luxury brands are never consumed in the same way at the
macro level. Even macro-level outcomes such as snobbery or bandwagon consumption
depend on micro-level individual consumer characteristics. However, some people
believe that the consumption of luxury products is a conspicuous waste, as it does not
serve‎humans’‎well-being. Further, they feel it is wasteful mainly because of the high
prices.
Social value may not be the same importance level for consumers. Such consumers
purchase luxury brands to satisfy all values together, while some will purchase luxury
brands to satisfy their personal needs (Hennigs et al. 2012). Personal or individual values
involve a different set of motivations, thus, it is important that individual values towards
34
luxury brands also be assessed. The next section will review individual values related to
luxury brand consumption self-identity, self-directed pleasure and self-esteem.
2.3.3 Individual value
Self-identity
Self-identity is the total of characteristics that people attribute to themselves (Sparks
& Guthrie, 1998). Researchers have examined self-identity as a precedent to attitude. A
consumer’s‎attitude‎is‎the‎antecedent‎of‎purchasing‎intention.‎Shaw‎and‎Shiu‎(2002)‎
found that both ethical obligation and self-identity were closely related to the prediction
of attitude and behavioral intention. They applied structural equation modeling instead of
regression analysis to clarify the precise roles of ethical obligation and self-identity. They
concluded that the role of ethical obligation and self-identity is better represented through
the prediction of behavioral intention instead of attitude.
There is some concern about self-identity measurements. According to Sparks and
Guthrie (1998), measures of identity are measures of the past. A mixture of values,
attitudes, and repeated behaviors affect self-identity. It is difficult to measure selfidentity because it is a complicated dimension that cannot be separated from other
dimensions, like self-attitude and values.
Purchase intention and other consumer behaviors can be predicted based on selfidentity. Consumers behave based on a variety of psychological values. Smith et al.
(2008) applied descriptive and injunctive/prescriptive norms, self-identity, and past
behavior to improve the predictive power of planned behavior theory. The findings
revealed that attitudes, norms, past behavior, and self-identity were positively related to
35
purchase intention. Therefore, purchase intention can be predicted based on self-identity.
That is, consumers seem to behave in ways that are confirmed by their self-identity.
The effect of self-identity is not the same in all societies, however. The impact of
self-identity on purchase intention varies from a cross-cultural perspective. Hennigs et al.
(2012) showed that US consumers emphasized individual values the most, followed by
consumers from India and Brazil. Spanish consumers did not emphasize the importance
of individual values on their purchasing intention. Some consumers who are rooted in
their self-identity consider luxury a main part of their lives. Those consumers are high in
their desire for status and hedonics. Indeed, those consumers weigh their individual
values more heavily than social values.
Self-directed pleasure
Most researchers refer to this motivation of directed pleasure as hedonic motivation
(Dubois & Laurent, 1996; Vigneron & Johnson, 2004). Hedonic motivation involves an
emotional response, thus, consumers purchase a product to satisfy their emotional needs.
The‎desire‎for‎pleasure‎is‎the‎consumer’s‎goal‎in‎this‎case‎(Solomon,‎2011).‎‎People‎shop‎
to escape from their‎daily‎life’s‎routine‎and‎also‎to‎meet‎their‎pleasure‎needs.‎‎In‎fact,‎
both personal and social pleasures are the result of hedonic motivation.
Shu-pei (2005) established a model that specifies the antecedents and consequents
of personal orientation towards luxury brand consumption. He found that luxury brand
purchase value is impacted by personal orientation. He stated that independent selfconstrual predicted self-directed goals of luxury brand purchase and self-directed
pleasure. The author stressed that there is a need for self-directed pleasure when
36
maintaining brand loyalty. This study confirmed that purchasing luxury brands depend on
both social and individual values.
Yann (2010) tested a model of the impact of extrinsic and intrinsic personal
aspirations on consumer decision making in the luxury brands market. He found that
intrinsic aspirations are more strongly related to conspicuous consumption. Therefore,
consumers who value intrinsic aspirations buy luxury products for quality and selfdirected pleasure, not for conspicuous consumption. They focus more on their own
pleasure of purchasing luxury brands than on the display of possessions.
Comparing individualistic and collectivist cultures (Britain and India) in terms of
self-directed pleasure, Shukla and Purani (2012) found that individualistic consumers
attach less psychological meaning to luxury consumption. Both cultures showed nonsignificant hedonism and pleasure seeking. Consumers seem to prefer products that
represent quality, aesthetics, and authenticity rather than satisfying self-aspects. This
preference may be due to the economic recession that forced consumers to consider
rational values over pleasure-seeking. Although this study compared collectivist and
individualistic cultures in terms of directed symbolic, hedonic, utilitarian, and cost
values, some important values need to be investigated.
Self-esteem
Self-esteem affects consumption in various ways. Mandel and Smeesters (2008)
examined the role of self-esteem on mortality salience consumptions, finding that
mortality salience consumption increased particularly for consumers with low selfesteem. Self-esteem‎also‎impacts‎consumers’‎choices‎of‎products.‎They‎consume‎to‎
escape from self-awareness. In this study, the relationship between self-esteem and
37
consumption was demonstrated. When individuals have low self-esteem, they are more
likely to increase their consumption activities. It is important to note, however, that this
study focused on food not apparel products.
Self- directed pleasure strongly impacts self-esteem. According to Truong and
McColl (2011), the relationship between self-esteem and self-directed pleasure is
eminent. They illustrate how purchasing luxury products as a self-reward may satisfy
individuals' needs for self-esteem. Although this study expanded the understanding of the
relationship between self-esteem and luxury consumption, there are few reports of the
impacts of self-esteem on luxury purchase intention. The authors stated that future
researchers should include self-esteem as an antecedent of luxury purchase intention, a
step which this dissertation research will address.
Another aspect assumed to be an antecedent or consequent of luxury brand
consumption‎is‎consumers’‎guilt.‎Consumers'‎guilt‎is‎thought to be related to
consumption in general. It is expected to be strongly related to luxury brand consumption
specifically. Consumer guilt may impact individual values specifically. The next section
will‎discuss‎and‎review‎consumers’‎guilt.
2.4 Consumer guilt
Consumer guilt was first explored by Burnett and Lunsford (1994). They attempted
to define and explain consumer guilt. They found that consumer guilt may explain
consumers’‎purchase‎intentions,‎and‎guilt‎also‎gives‎retailers‎an‎opportunity‎to‎persuade‎
their customers to buy their products. Consumer guilt has been used as simulation appeal
in the markets for undesirable behaviors such as alcohol and tobacco consumption. The
38
authors concluded that a guilty feeling is all about the degree of control over the outcome.
If the degree of the control over the situation is high, the guilty feelings will be high.
Conversely, if the degree is low, no guilty feelings will be expected.
Hibbert et al. (2007) examined the level of guilt that consumers experience when
they are exposed to donation advertising or donation intentions. They also examined the
relationship between knowledge of persuasion tactics and charities by applying the
persuasion knowledge model. They found that guilty feelings are positively related to
donation intention. Guilty feelings are, in fact, impacted by persuasion knowledge. By
illustrating the role of persuasion, the findings supported the idea that consumers are
active in marketing communications and agent knowledge. The manipulative intent is
negatively related to guilty feelings, and beliefs about a charity are positively related to
guilt arousal.
Chattopadhyay (2010) found that in India, one-third of consumers experienced
guilt about purchasing a global luxury brand. This feeling of guilt motivated these
consumers to adjust their choices of luxuries. Therefore, our feelings can and do affect
our choices of products.
Özhan‎&‎Kazançoğlu‎(2010)‎attempted‎to‎develop‎a‎phenomenological‎account‎of‎
consumer guilt, and they revealed five dimensions of consumer guilt: hesitation, sadness,
reluctance to spend, regret, and self-blame. Consumer guilt is usually a result of
transgressions, self-control failures, and indulgence in hedonistic desires. Guilty feelings,
in fact, have short lives and are superficial. It is usually a result of bad or good, not right
or wrong, actions. Indeed, consumers' guilt depends on individualistic values, such as
striving for individual distinctiveness and independence in lifestyle choices. Guilty
39
feelings in general are a result of personal and socio-cultural norms Özhan &
Kazançoğlu,‎2010).
Luxury values, individualism and collectivism and consumer guilt are factors that
lead to either positive or negative attitude concerning luxury purchase intention. To better
understand consumer’s‎attitude‎and‎intention,‎these topics have to be reviewed in depth.
The next section reviews the concept of attitude and luxury purchase intention.
2.5 Attitude and Luxury purchase intention
The growth of luxury product consumption has encouraged researchers to study
various dimensions like attitude and luxury purchase intention. Zhang & Kim (2013)
examine‎the‎factors‎that‎impact‎Chinese‎consumers’‎attitude‎towards‎purchasing‎luxury‎
fashion products. They examined five core factors: brand consciousness, materialism,
social comparison, fashion innovativeness, and fashion involvement. Moreover, they
examined the impact of consumer attitude on luxury purchase intention. Generally, the
result of this study showed that Chinese consumers have positive attitude towards
purchasing luxury products. In particular, the three factors: brand consciousness, social
comparison and fashion innovativeness have a significant effect on attitude towards
purchasing luxury fashion goods. In addition, Chinese consumers’‎luxury‎purchasing‎
intention was impacted by their attitude towards buying luxury goods.
Luxury‎purchase‎intention‎measures‎a‎person’s‎attitude‎toward‎the‎act‎of‎buying‎
instead of the attitude toward the product itself (Solomon, 2011). Purchase intention
shows to what extent a person is willing to purchase a product. For instance, Park et al.
(2008) studied global luxury brand purchasing among young Korean consumers. Their
study attempted to identify why young Korean consumers purchased global luxury
40
fashion. Different reasons which motivate young consumers to purchase luxury fashion
were discussed. Specifically, Park et al. (2008) found that purchase frequency was the
most effective factor, followed by conformity and age, then racial superiority, social
recognition, and pocket money came last. Vanity did not have a significant relation with
luxury consumption. Although the researchers examined different determinants for
specific consumers, some important purchasing factors still need to be investigated.
Indeed, their study did not examine some individual and functional aspects.
Highlighting external and internal motivation for purchasing luxury brands, Yann
(2010) focused on personal aspirations and the consumption of luxury goods. He tested a
model of the effects of external and internal personal aspirations on consumer decision
making in the luxury products market. He found that external aspirations are significantly
related to quality search, while the internal aspirations are related to self-pleasure (Yann,
2010). He suggested that brand retailers should consider both internal and external
consumer motivations in the design of their marketing advertising to improve brand
loyalty in the long run. This study showed the impact of extrinsic aspirations on
purchasing decisions. Extrinsic aspirations have a greater effect on buying luxury
products than personal aspirations (Yann, 2010).
Bruno et al. (2012) conducted a study in different countries, including Japan, China,
France, Italy, India, Russia, and the United States, about the effects of brand and countryof-origin on consumers' decision to purchase luxury products. This study investigated the
relationship between the country of origin and luxury purchase decision. This study
includes a richly multicultural analysis from different countries all over the world. The
result shows the importance of consumers' provenance on the luxury purchasing decision,
41
and‎the‎consumer’s‎purchasing‎decision‎depends‎on‎the‎maturity‎of‎the‎market (Bruno et
al., 2012).
Although this study was conducted in seven different countries with different
cultures, it does not compare cultures regarding their attitudes toward collectivism and
individualism. For marketing implications, there is an urgent need to understand
consumer’s consumption values for luxury products, as there has been growth in the
consumption of luxury products globally. Thus, consumers may value luxury products
differently based on the cultural feature of collectivism and individualism. Given these
cultural differences, it is imperative that marketers of global luxury brands understand
what these divers consumers value, in order to market to them more effectively. This
study will address this gap. Thus, the next section is the conceptual framework and the
hypotheses for this dissertation research.
2.6 Conceptual framework
As previously stated, the main research question of this study is: Do individualist
and collectivist consumers value luxury brands differently? To answer this question,
several relationships have to be investigated: the relationships between luxury values
(functional, social, and individual) and attitude. Past research has examined the
relationship between luxury values, attitude and luxury purchase intention (Han et al.,
2010; Miremadi et al., 2011; Yann, 2010). Moreover, culture dimensions (individualism
and collectivism) and consumer guilt were tested to clarify whether they act as
moderating variables. Previous research studies have shown how consumers from
collectivist and individualist cultures value products differently (Muk et al. 2014; Lee and
42
Ro, 1992). Based on the research question and the review of the literature, the proposed
conceptual model was designed as shown in Figure 3.
Figure 3. Proposed Model
2.7 Hypotheses
Based on the literature review, the following hypotheses were developed:‎
H1: There are relationships between a) quality value and luxury purchase intention and b)
uniqueness ‎value and luxury purchase intention.‎
H2: There are relationships between a) social status value and luxury purchase intention
and b) ‎conspicuous value and luxury purchase intention.‎
43
H3 There are relationships between a) self-identity and luxury purchase intention, b) selfdirected ‎pleasure and luxury purchase intention, and c) self-esteem and luxury purchase
intention. ‎
H4a: The relationship between quality value and luxury purchase intention is moderated
based on the ‎respondent’s‎cultural‎dimension‎(collectivism vs. individualism) and
consumer guilt.‎
H4b: The relationship between uniqueness value and luxury purchase intention is
moderated based on ‎the respondent’s‎cultural‎dimension‎and‎consumer guilt.‎
H5a: The relationship between social status value and luxury purchase intention is
moderated based on the respondent’s‎cultural‎dimension‎and‎consumer guilt.‎
H5b) The relationship between conspicuous value and luxury purchase intention is
moderated based on the respondent’s‎cultural‎dimension‎and consumer guilt. ‎
H6a) The relationship between self-identify and luxury purchase intention is moderated
based on the ‎respondent’s‎cultural‎dimension‎and consumer guilt.‎
H6b) the relationship between self-directed pleasure and luxury purchase intention is
moderated based ‎on the respondent’s‎cultural‎dimension‎and consumer guilt.‎
H6c) the relationship between self-esteem and luxury purchase intention is moderated
based on the ‎respondent’s‎cultural‎dimension‎and‎consumer guilt.‎
H7a: The relationship between quality value and luxury purchase intention is mediated
based on the ‎respondent’s‎attitude‎toward‎luxury.‎‎
H7b: The relationship between uniqueness value and luxury purchase intention is
mediated based on the ‎respondent’s‎attitude‎toward‎luxury.‎
44
H8a: The relationship between social status value and luxury purchase intention is
mediated based on ‎the‎respondent’s‎attitude‎toward‎luxury.‎
H8b: The relationship between conspicuous value and luxury purchase intention is
mediated based on ‎the‎respondent’s‎attitude‎toward‎luxury.‎
H9a: The relationship between self-identify and luxury purchase intention is mediated
based on the ‎respondent’s‎attitude toward luxury.‎
H9b: The relationship between self-directed pleasure and luxury purchase intention is
mediated based ‎on‎the‎respondent’s‎attitude‎toward‎luxury.‎
H9c: The relationship between self-esteem and luxury purchase intention is mediated
based on the ‎respondent’s‎attitude‎toward‎luxury.‎
2.8 Summary
In this chapter, I provided an overview of the research related to the topics of
luxury, individualism, collectivism, luxury values (functional, social, and individual),
consumer guilt, attitude and luxury purchase intention. The proposed model and the
hypotheses were presented, and the gaps between the literature and the current study were
highlighted.
45
CHAPTER 3: METHODOLOGICAL FRAMEWORK
In this chapter, I discuss how the research was conducted. I provide an overview
of the research methodology, and the sample that was collected for this study is
identified. In addition, the methods that were used to collect data are discussed, and an indepth overview of the procedure and data analysis is provided.
3.1 Sampling
Because this study compares two different cultures, samples were collected from
two countries—the United States of America and Saudi Arabia. University students are
the target for this study in both countries, as they provide a good sample of the
community. Furthermore, the reason why university students are chosen to be the target
for this study is because young consumers have increasing demands for luxury brands
(Park et al. 2008). The United States participants were chosen from one of the largest
universities in the southeastern United States, where the researcher currently resides. In
Saudi Arabia, the participants were chosen from one of the universities in the researcher’s
hometown.
The research was conducted through a web-based survey. The Qualtrics online
survey tool was employed. The link for the questionnaire was sent in an e-mail message
to both universities based on a random sample consisting of graduate and undergraduate,
male and female, Saudi and American students. The number of the participants was 478
in total: 171 for the United States and 277 for Saudi Arabia. The participants were over
18 years of age, which is the lowest age for university students for undergraduate and
graduate students.
46
3.2 Measurement
As noted above, the purpose of this study is to examine the differences between
individualists and collectivists in valuing luxury products. A questionnaire survey that
was designed to investigate those differences, included five parts. The first part includes
items designed to‎investigate‎the‎participants’‎level of individualism and collectivism.
The second part includes items designed to measure the variables of luxury values,
including functional (quality and uniqueness), social (social status and conspicuous
consumption), and individual values (self-identity, self-directed pleasure, and selfesteem). The third part includes items designed to‎examine‎consumers’‎guilt.‎The‎fourth‎
part consists of items designed to examine attitude and purchase intention. Finally, the
last part includes demographic data of the participants: age, sex, race, income, and level
of education.
Various scales were adopted to address the objectives of this study. For the
variables of individualism and collectivism, the Li and Aksoy (2007) scale was applied.
This scale was applied in the Li and Aksoy study to investigate both vertical and
horizontal dimensions for individualism and collectivism variables. In the current study,
vertical and horizontal dimensions were combined into one scale, as there is no need to
divide the scale into two dimensions. An example of a collectivism scale measurement is
“Parents‎and‎children‎must‎stay‎together‎as‎much‎as‎possible,”‎and‎an example of an
individualism scale measurement is‎“It‎is‎important‎that‎I‎do‎my‎job‎better‎than‎others.”‎
Several variables of luxury values were examined. Three core values were
investigated through different scales. First, functional values, which include quality and
47
uniqueness, were addressed. The quality measurement was adopted from the Truong and
McColl (2011) study. Their scale fits this study because it provides an exact measurement
of the perceived luxury quality. An example of an item from their scale that measures
quality is “Product quality superiority is my major reason for buying a luxury brand.”
The Bian and Forsythe (2012) scale was used to measure uniqueness. The scale consists
of questions designed to investigate three main dimensions: creative, unpopular choice,
and similarity. An example of an item from this scale is “I’m often on the lookout for
new products or brands that will add to my personal uniqueness.”
Two main social value dimensions were tested: social status and conspicuous
consumption. The social status scale, adopted from Yong Eng (2012), investigates
whether a luxury brand represents the individual’s social status and lifestyle; for example,
“Luxury‎brands‎symbolize‎one’s‎social‎status.” The scale of Truong and McColl (2011)
was used to measure conspicuous consumption. The scale consists of questions designed
to test the conspicuous consumption of luxury brands, such as “Product prestige is my
major reason for buying a luxury brand.”
Three main individual values were tested: self-identity, self-directed pleasure, and
self-esteem. To measure the self-identity dimension, the scale of the Wiedmann, Hennigs
and Siebels (2009) study was adopted. The measurement was originally designed to
measure self-identity specifically related to luxury consumption. An example of an item
designed to measure self-identity is “I never buy a luxury brand inconsistent with the
characteristics with which I describe myself.” Self-directed pleasure is the second
individual value, and the Truong and McColl (2011) scale was adopted for this purpose.
An example of an item on this scale is‎“I buy a luxury brand only because it pleases me,
48
so I do not care about whether it pleases others.” Self-esteem is the last dimension of
individual values. The Malär et al. (2011) scale, which measures self -esteem in general,
was adopted. An example of this scale is “On the whole, I am satisfied with myself.”
To investigate consumer guilt, the Özhan^Dedeoğlu‎and‎Kazançoğlu‎(2012)
measurement was applied. This scale was designed to measure the anticipatory guilt in
particular. An example of an item to measure consumer guilt is‎“Anticipating a future
regret makes me behave more responsibly during shopping”.
To measure the participants’‎attitudes toward luxury products, the Loureiro and
Araújo (2014) scale was adopted. This scale was originally designed to measure a
specific luxury brand; however, in this study, it was changed to measure attitudes toward
luxury products in general. An example of an item to measure attitude toward luxury is “I
buy luxury brands because they provide many benefits (e.g., quality, designer, fashion,
status, etc.).”
To study the luxury purchase intention dimension, the measurement of Shukla and
Purani (2012) was adopted. This scale was designed to measure the intention of
purchasing a luxury accessories brand. Some changes were applied so this scale can fit
luxury products in general. An example of an item to measure luxury purchase intention
is‎“I purchase luxury brands to show who I am.”
The questionnaire used in this study has a total of 54 questions, consisting of 16
questions on individualism and collectivism, ten questions on functional value (three on
quality and seven on need for uniqueness), seven questions on social value (four on social
status and three on conspicuous consumption), ten questions on individual value (three on
self-identity, three on directed pleasure, and four on self-esteem), two questions on
49
consumer guilt, four questions on attitude toward luxury, and five questions on luxury
purchase intention. Each construct of this study was measured by answers on a five-point
Likert scale (1 = strongly disagree and 5 = strongly agree). A summary of the variables
scales used in this study is presented in Table1.
Table 1
The variables scales
Scale
Items
Individualism and Collectivism scale
Collectivism
Li, F., & Aksoy, L. (2007).
Dimensionality of IndividualismCollectivism and Measurement
Equivalence of Triandis and Gelfand's
Scale. Journal of Business and
Psychology, (3). 313.
•
Parents and children must stay together as much
as possible.
•
It is my duty to take care of my family, even
when I have to sacrifice what I want.
•
Family members should stick together, no
matter what sacrifices are required.
•
It is important to me that I respect the decisions
made by my groups
•
If a coworker gets a prize, I would feel proud.
•
The well-being of my coworkers is important to
me.
•
To me, pleasure is spending time with others
•
I feel good when I cooperate with others.
Individualism
•
It is important that I do my job better than
others.
•
Winning is everything.
•
Competition is the law of nature
•
When another person does better than I do, I get
tense and aroused.
•
I’d‎rather depend on myself than others.
50
Table 1 continued
Scale
Quality scale
Truong, Y., & McColl, R. (2011).
Intrinsic motivations, self-esteem, and
luxury goods consumption. Journal of
Retailing & Consumer
Services, 18(6), 555-561
Need for uniqueness scale
Bian, Q., & Forsythe, S. (2012).
Purchase intention for luxury brands:
A cross cultural comparison. Journal
of Business Research, 65 (2012)
1443–1451.
Items
•
I rely on myself most of the time;I rarely rely on
others.
•
I‎often‎do‎‘‘my‎own‎things.‎
•
My personal identity, independent of others, is
very important to me
Product quality superiority is my major reason
for buying a luxury brand.
•
•
I place emphasis on quality assurance over
prestige when considering the purchase of a
luxury brand.
•
A luxury brand preferred by many people that
does not meet my quality standards will never
enter into my purchasing considerations
•
I'm often on the lookout for new products or
brands that will add to my personal uniqueness
•
Having an eye for products that are interesting
and unusual assists me in establishing a
distinctive image.
•
I often try to find a more interesting version of
run-of-the-mill products because I enjoy being
original.
•
I often dress unconventionally even when it's
likely to offend others.
•
If someone hinted that I had been dressing
inappropriately for a social situation, I would
continue dressing in the same manner.
•
I dislike brands or products that are customarily
purchased by everyone.
•
I often try to avoid products or brands that I
know are bought by the general population.
51
Table 1 continued
Scale
Social status scale
Yong Eng, T. (2012). Psychological
and cultural insight into consumption
of luxury western brand in India.
Journal of customer behavior vol. 9
no. 1 p.55-75
Conspicuous consumption behavior
scale
Items
•
Luxury‎brands‎symbolize‎one’s‎social‎status
•
Luxury brands represent the latest lifestyles
•
Luxury‎brands‎signify‎one’s‎trendy‎image
•
Luxury brands associated with the symbol of
prestige
Product prestige is my major reason for buying a
luxury brand
•
•
It is important for me that the luxury brand I buy
improves my image
•
The luxury brand I purchase must be a status
symbol
•
I never buy a luxury brand inconsistent with the
characteristics with which I describe myself.
•
The luxury brands I buy must match what and
who I really am.
•
My choice of luxury brands depends on whether
they reflect how I see myself but not how others
see me.
•
I buy a luxury brand only because it pleases me,
so I do not care about whether it pleases others.
•
I tend to concentrate consumption on my own
pleasure rather than others', so I consider only
my own pleasure.
•
I can enjoy luxury brands entirely on my own
terms, no matter what others may feel about
them.
Self-esteem scale
•
On the whole, I am satisfied with myself
Malär, L., Krohmer, H., Hoyer, W.
D., & Nyffenegger, B. (2011).
Emotional Brand Attachment and
Brand Personality: The Relative
Importance of the Actual and the Ideal
Self. Journal Of Marketing, 75(4), 3552.
•
I feel that I am a person of worth.
•
All in all, I am inclined to think that I am a
failure. (Reversed).
•
I take a positive attitude toward myself.
Truong, Y., & McColl, R. (2011).
Intrinsic motivations, self-esteem, and
luxury goods consumption. Journal
Of Retailing & Consumer
Services, 18(6), 555-561
Self-identity scale
Wiedmann, K., Hennigs, N., &
Siebels, A. (2009). Value-based
segmentation of luxury consumption
behavior. Psychology &
Marketing, 26(7), 625-651.
Self-directed pleasure Scale
Truong, Y., & McColl, R. (2011).
Intrinsic motivations, self-esteem, and
luxury goods consumption. Journal
Of Retailing & Consumer
Services, 18(6), 555-561.
52
Table 1 continued
Scale
Items

Anticipating a future regret makes me behave
more responsibly during shopping.
•
I do not buy expensive products in order to
avoid guilt feelings
•
I buy clothes from this brand because I have
many benefits (e.g., quality, designer, is fashion,
status, etc..)
•
Luxury clothes of this brand satisfy my needs
•
This luxury brand helps to show my social status
•
In general, I am happy with the clothes of this
luxury brand
Luxury purchase intention scale
•
I purchase luxury brand to show who I am.
Shukla, P., & Purani, K. (2012).
Comparing the importance of luxury
value perceptions in cross-national
contexts. Journal Of Business
Research, 65(Fashion Marketing and
Consumption of Luxury Brands),
1417-1424.
•
I would buy a luxury brand just because it has
status.
•
Owning luxury brands indicate a symbol of
wealth.
•
I would pay more for a luxury brand if it has
status.
•
Luxury brands are important to me because they
make me feel more acceptable in my work
circle.
Consumer guilt scale
Özhan^Dedeoğlu,‎A.,‎& Kazançoğlu,‎
I. (2012). Consumer Guilt: A Model
of Its Antecedents and Consequences.
Ege Academic Review, 12(1), 9-22.
Attitude scale
Loureiro, S. C., & Araújo, C. d.
(2014). Luxury values and experience
as drivers for consumers to
recommend and pay more. Journal Of
Retailing & Consumer
Services, 21(3), 394-400.
3.3 Procedure
Institutional Review Board approval was obtained before conducting this study.
After approval was obtained, the surveys were distributed randomly via student e-mail.
The survey was conducted online between April 2015 and May 2015. For this cross53
cultural study, two equivalent surveys were conducted in two cultural contexts; one was
conducted in the United States and the other in Saudi Arabia. For the US sample, the
survey was distributed among students from the departments of Human Ecology,
Chemistry and Business. For Saudi sample, it was sent to students of the department of
Home Economics, Business and Education. The survey was written in both English and
Arabic. Because the research was originally written in English, the Saudi questionnaire
was also ‎written‎in‎English,‎and‎then‎translated‎to‎the‎researcher’s‎native‎language‎
(Arabic). The questionnaire was translated by the researcher and ‎reviewed by The Middle
East Office for Translation. The survey was also reviewed by an expert of Arabic
linguistics. A pretest was conducted to ensure that the survey was translated correctly.
During this pretest, six Saudi students who speak both Arabic and English languages took
the survey. Thereafter, they edited some questions, and based on their revision, the last
draft of the survey was built.
3.4 Data analysis
This study was designed as a quantitative study to investigate the differences
between how cultures value luxury brands. The collected data was entered and analyzed
using SPSS and SPSS AMOS version 21. Different statistical tests were extracted using
SPSS. Descriptive statistics (means, standard deviations, and bivariate correlations) were
computed for the whole sample and separately for the American and Saudi samples. For
introductory‎analysis,‎Cronbach’s‎alpha coefficient was used to measure the internal
consistency reliability of the measures used in this research. In terms of descriptive
statistics, the collected demographic data collected in both the United States and Saudi
Arabia were used to report the demographic configurations of the study participants.
54
For data screening, the accuracy and quality of the data collected was tested using
redundancies to ensure that the surveys were collected and entered appropriately for all
subjects. The kind of missing data was checked and handled by AMOS. In order to
ensure that the model is a good fit to the data, the normality was examined to assure that
the multivariate distribution was normally distributed. Specifically, skewness and
kurtosis were examined. In order to examine relationships among study variables,
correlation analysis was applied. Specifically, bivariate correlations coefficient was
carried out to examine the relationships. The absence of outliers was also checked. Both
univariate and multivariate outliers were examined. A univariate outlier was represented
when the participants were extreme on only one variable. A multivariate outlier
represents that when participants have two or more extreme scores on unusual formation
of scores (Weston & Gore, 2006).
The tool that was used primarily in this study is Structural Equation Modelling.
Because there are several independent variables and one dependent variable, structural
equation modelling (SEM) is the most appropriate tool (Tabachnick and Fidell, 2001).
The SEM was conducted as follows: first, the model specification was done by drawing a
picture using AMOS software. SPSS Amos version 21 was used for both path analysis
and structural equation modeling SEM in this study. Comparing with other softwares,
AMOS has several advantages. It obtains direct and indirect effects, uses multilevel and
multi group analysis and deals with categorical indicators and latent class analysis
(Muthen & Muthen, 2002). The direct relationship between luxury values and purchase
intention was addressed. The moderating variables were culture dimension and
consumer’s‎guilt‎and the mediating variable is the attitude toward luxury brand. The data
55
was built from raw data that are in the form of correlation matrix. Second, parameters of
the postulated model were estimated by AMOS. Thus, parameters were left free in order
to consider implications of estimated parameters (Weston & Gore, 2006). Third, the
model’s‎fit to the data was evaluated to determine whether the associations among
measured and latent variables in the model adequately reflect the observed associations in
the data. According to Hu & Bentler (1998; 1999), three types of fit indices should be
examined: absolute, parsimonious and incremental. Absolute fit indices indicates how
well the model-implied covariance match the observed covariances. To assess absolute,
parsimonious and incremental model fit, the Standardized Root Mean Square (SRMR),
the Root Mean Square Error of Approximation (RMSEA) and the Comparative Fit Index
(CFI) were used.
Consumer guilt, individualism and collectivism were entered into the equation to
determine whether they moderate the relationship between luxury values and luxury
purchase intention. The moderator is a variable that impacts the direction and/or strength
of the relationship between the independent variables and the dependent variable.
Attitude, on the other hand, entered the equation as a mediating variable to explain the
nature of the relationship between the independent and dependent variables.
AMOS does not readily handle moderation between latent and manifest variables.
To address this in this study, two groups were compared (Saudi and US students) by
assessing their means through the SPSS tool. For both of them I found the means on each
of the moderator variables. For each, I created a variable that is coded 1 for those above
the mean and 0 for those below the mean. I treated these new variables in multigroup
analysis to test for changes in the structural coefficients based on these new groups.
56
3.5 Summary
In this chapter, the data collection methods were explained and an in-depth
overview of the research measurement was provided. Finally, the study procedures and
data analysis tools were discussed.
57
CHAPTER 4: RESULTS
In the current chapter, the preliminary screening procedures will first be
described. Following this, the statistics describing the sample and study variables will be
presented. Lastly, the results testing the hypotheses will be summarized.
4.1 Preliminary Screening Procedures
4.1.1 Screening for Normality
Mean composites were created for Quality Value, Uniqueness, Social Status,
Conspicuousness, Self-Identity, Self-Directed Pleasure, and Self-Esteem; these mean
composites were evaluated for normality. Given that the constructs (Attitude toward
Luxury Brands and Luxury Purchase Intention) were going to be measured using
individual items, the individual items were tested for normality.
Per Kline (2011), a variable is normally distributed if its skewness index (i.e.,
skewness statistic/standard error) is less than three and if its kurtosis index (i.e., kurtosis
statistic/standard error) is less than 20. Seven of the variables were highly skewed and
thus transformed using a natural log function.
Table 2
Skewness and Kurtosis Statistics for the Study Variables (N = 454)
Variables
Skewness
Kurtosis
Quality
-.70
.49
Uniqueness
-.12
-.22
Social status
-.10
-.61
Conspicuousness
-.04
-.62
Self-identity
-.65
.26
58
Table 2 continued
Variables
Skewness
Kurtosis
Self-direction
-.59
-.05
Self-esteem
-.75
.78
Item 1
-.84
1.15
Item 2
-.41
.02
Item 3
.08
.85
Item 4
-.67
.59
Item 1
.36
-.76
Item 2
.34
-.83
Item 3
-.11
-.105
Item 4
.37
-.79
Item 5
.29
-.80
Attitudes toward luxury brands
Luxury purchase intention
Note. SE for skewness = .12. SE for kurtosis = .23.
4.1.2 Screening for Outliers
Univariate outliers. Univariate outliers were detected by first standardizing the
variables. Cases whose standardized values fell above the absolute value of 3.29 were
deemed to be univariate outliers (Tabachnick & Fidell, 2007). None of the cases had
values above the absolute value of 3.29; therefore, there were no univariate outliers.
Multivariate outliers. Multivariate outliers were detected via the MahalanobisD2
values yielded by the AMOS 21 program. Per Byrne (2010), a case is a multivariate
outlier if its D2 value is high relative to the D2 values of the other cases. Six cases met
this criterion and were thus deleted from the data set.
59
4.2 Descriptive Statistics
4.2.1 Description of Sample
The findings in Table 3 reveal that within the United States sample, there was an
almost equal proportion of male (52%) and female respondents (48%). The majority of
respondents were between 18 and 24 years old (74.9%) and Caucasian (60.2%). Thirtyeight percent earned less than $25,000 and 29.2% earned more than $100,000 annually.
Within the Saudi sample, the majority of the respondents were female (97.1%).
Close to half of the sample consisted of 18 to 24 year olds (47.7%); 39% were between
25 and 30 years old. The majority of respondents were Arab (97.5%). Twenty-eight
percent earned less than $25,000, and 20.9% earned more than $100,000 annually as
household income.
Table 3
Frequencies and Percentages for the Variables Describing the Sample
Whole Sample United States Saudi Arabia
N = 478
N = 171
N = 277
N
(%)
n
(%)
n
Female
351
(78.3)
82
(48.0)
Male
97
(21.7)
89
(52.0)
8
(2.9)
18 to 24
260
(58.0)
128
(74.9)
132
(47.7)
25 to 34
137
(30.6)
29
(17.0)
108
(39.0)
35 to 44
40
(8.9)
10
(5.8)
45 or older
11
(2.5)
4
(2.4)
Variables
(%)
Gender
269 (97.1)
Age group in years
60
30 (10.8)
7
(2.6)
Table 3 continued
Whole Sample United States
Saudi Arabia
N = 478
N = 171
N = 277
N
(%)
n
(%)
n
(%)
Caucasian
105
(23.4)
103
(60.2)
2
(0.7)
Non-Caucasian
71
(15.8)
66
(38.6)
5
(1.8)
Arab
272
(60.7)
2
(1.2)
270
(97.5)
Less than $25,000
142
(31.7)
65
(38.0)
77
(27.8)
$25,000 to $49,999
104
(23.2)
31
(18.1)
73
(26.4)
$50,000 to $99,999
94
(21.0)
25
(14.6)
69
(24.9)
$100,000 or more
108
(24.1)
50
(29.2)
58
(20.9)
Variables
Ethnicity
Household Income
4.2.2 Description of Brand Purchase Intention
As shown in Table 4, the top three luxury brands within the United States sample
were Ralph Lauren (63.2%), Calvin Klein (63.2%), and Michael Kors (57.3%). Within
the Saudi Arabian sample, the top three luxury brands participants plan to purchase were
Chanel (49.5%), Christian Dior (39.7%), and Louis Vuitton (35.7%).
61
Table 4
Frequencies and Percentages for the Luxury Brands Purchased
Whole Sample United States Saudi Arabia
N = 478
N = 171
N = 277
Variables
N
(%)
n
(%)
n
(%)
Gucci
178
(39.7)
93
(54.4)
85
(30.7)
Chanel
212
(47.3)
75
(43.9)
137
(49.5)
Christian Dior
166
(37.1)
56
(32.7)
110
(39.7)
Louis Vuitton
191
(42.6)
92
(53.8)
99
(35.7)
Giorgio Armani
136
(30.4)
76
(44.4)
60
(21.7)
Prada
144
(32.1)
64
(37.4)
80
(28.9)
Burberry
117
(26.1)
51
(29.8)
66
(23.8)
Tiffany & Co.
147
(32.8)
81
(47.4)
66
(23.8)
Cartier
124
(27.7)
36
(21.1)
88
(31.8)
Hermes
84
(18.8)
37
(21.6)
47
(17.0)
Ralph Lauren
169
(37.7)
108
(63.2)
61
(22.0)
Dolce and Gabbanna 139
(31.0)
61
(35.7)
78
(28.2)
Ferragamo
56
(12.5)
24
(14.0)
32
(11.6)
Calvin Klein
172
(38.4)
108
(63.2)
64
(23.1)
Fendi
127
(28.3)
40
(23.4)
87
(31.4)
Chloe
65
(14.5)
21
(12.3)
44
(15.9)
Moschino
58
(12.9)
19
(11.1)
39
(14.1)
Christian Louboutin
84
(18.3)
49
(28.7)
35
(12.6)
Jimmy Choo
65
(14.5)
42
(24.6)
23
(8.3)
Michael Kors
178
(39.7)
98
(57.3)
80
(28.9)
ManoloBlahnik
40
(8.9)
25
(14.6)
15
(5.4)
62
4.2.3 Description of the Study Variables
Per‎Nunnally‎and‎Bernstein‎(1994),‎a‎measure‎is‎reliable‎if‎Cronbach’s‎alpha‎is‎
.70 or higher. As shown in Table 5,‎Cronbach’s‎alpha for most of the scales were
acceptable or close to acceptable. Note that because alpha for the Guilt measure (that
consisted of two items) was unacceptable at .46, only the second item was used to
measure guilt. Initial alpha for the Quality Value measure was .60; when the third item
was dropped, alpha increased to .65. Initial alpha for the Self-Esteem measure was .72;
when the reverse-coded third item was dropped, alpha increased to .76. Initial alpha for
the Attitude toward Luxury Brands measure was only .59; when the third item was
dropped, alpha increased to .64.
Note that although the mean Collectivism score for the Saudi Arabian sample (M
= 4.09, SD = .41) was somewhat higher than that of the United States sample (M = 3.80,
SD = .60), the mean Individualism scores were similar. The mean Social Status score for
the United States sample was somewhat higher (M = 3.47, SD = .81) than that of the
Saudi Arabian sample (M = 3.03, SD = .82). On the other hand, the mean Self-Identity (M
= 4.06, SD = .74) and Self-Directed Pleasure scores (M = 4.07, SD = .77) for the Saudi
Arabian sample was somewhat higher than that of the United States sample (M = 3.63,
SD = .79 for Self-Identity; M = 3.76, SD = .81 for Self-Directed Pleasure). Although the
mean Attitude toward Luxury Brands score for the Saudi Arabian sample (M = 3.88, SD
= .59) was higher than that of the United States sample (M = 3.66, SD = .62), their mean
Intent score (M = 2.52, SD = .87) was lower than the mean Intent score of the United
States sample (M = 3.05, SD = .83).
63
Table 5
Descriptive‎Statistics‎and‎Cronbach’s‎Alpha‎for‎the‎Study‎Measures‎
Whole Sample
United States
N = 478
M
SD
3.98
(.52)
Saudi Arabia
N = 171
α
M
SD
.81 3.80 (.60)
N = 277
α
M
SD
.61 4.09 (.41)
.65
3.63
Variables
Collectivism
α
.74
Individualism
.69
3.64
(.53)
.74
3.65
Guilt
--
3.22
(1.13)
--
3.13 (1.15)
--
3.27 (1.12)
Quality
.65
3.81
(.81)
.61
3.85
(.77)
.67
3.79
(.83)
Uniqueness
.72
3.01
(.65)
.80
3.08
(.70)
.65
2.96
(.60)
Social status
.76
3.20
(.84)
.78
3.47
(.81)
.72
3.03
(.82)
Conspicuousness
.73
2.96
(.90)
.76
3.04
(.90)
.71
2.91
(.90)
Self-identity
.78
3.90
(.79)
.75
3.63
(.79)
.76
4.06
(.74)
Self-directed
.79
3.95
(.80)
.72
3.76
(.81)
.82
4.07
(.77)
Self-esteem
.72
4.16
(.63)
.78
4.16
(.70)
.69
4.15
(.58)
Attitude toward
.64
3.80
(.61)
.63
3.66
(.62)
.61
3.88
(.59)
.85
2.72
(.90)
.81
3.05
(.83)
.85
2.52
(.87)
(.58)
(.49)
pleasure
luxury
Luxury purchase
intention
4.3 Correlations between the Study Variables
Whole sample.As shown in Table 6, Collectivism was negatively associated with
Uniqueness (r = -.11, p< .01) and Luxury Purchase Intention (r = -.14, p< .01) but
positively correlated with Self-Identity (r = .14, p< .01), Self-Esteem (r = .18, p< .001),
and Attitudes toward Luxury brands (r = .13, p< .01). Individualism was positively
associated with all the measures except for Guilt and Luxury Purchase Intention.
United States sample. The findings in Table 7 reveal that Collectivism was
negatively associated with Guilt (r = -.23, p< .01) and uniqueness (r = -.18, p< .05) but
64
positively correlated with Status (r = .20, p< .05) and Self-Esteem (r = .16, p< .05).
Individualism was positively associated with most of the measures except for Guilt,
Conspicuousness, and Luxury Purchase Intention.
Saudi Arabian sample. The findings in Table 8 indicate that Collectivism was
positively correlated with Self-Identity (r = .18, p< .01), Self-Esteem (r = .23, p< .001),
and Attitudes toward Luxury Brands (r = .15, p< .05). Individualism was positively
associated with all the measures except for Guilt, status, and Luxury Purchase Intention.
4.4 Results of the Hypotheses Tests
4.4.1 Procedure
Prior to testing the proposed structural model, the measurement model was tested
via a confirmatory factor analysis using the AMOS 21 program. Model fit was assessed
via the chi-square statistic and the fit indices (per Kline, 2011) shown in Table 9. The
coefficients were assessed at an alpha of .05. . Then, an exploratory factor analysis was
run to see what would be produced without any prior predictions from the measurement
model. This is reported in a note after Figure 5.
Testing for mediation. Per Kline (2011), a variable is deemed a mediator when the
following criteria are met: the independent variable significantly predicts the mediator;
the mediator significantly predicts the dependent variable; and the indirect effect is
statistically significant but the direct effect is not statistically significant. If the direct
effect continues to be significant then the mediation would be partial. Bootstrapping
procedures (N = 1000 bootstrap samples) were conducted to determine the significance of
the direct and indirect effects.
65
Table 6
Pearson Correlations between the Study Variables for the Whole Sample (N = 448)
Variables
1
2
3
4
5
6
7
8
9
10
11
1 Collectivism
2 Individualism
.00
3 Guilt
-.07
.05
4 Quality
-.01
.20 ***
5 Uniqueness
-.11 *
.19 ***
6 Social Status
.01
.12 *
-.07
-.01
.14 **
7 Conspicuousness
-.01
.11 *
-.01
-.05
.22 ***
.05
-.22 ***
.32 ***
.63 ***
8 Self-Identity
.14 **
.18 ***
.11 *
.23 ***
.13 **
-.06
-.03
9 Self-Directed Pleasure
.03
.18 ***
.01
.31 ***
.07
-.17 ***
-.15 **
.52 ***
10 Self-Esteem
.18 ***
.18 ***
-.08
.25 ***
-.05
-.11 *
.27 ***
.31 ***
11 Attitude
.13 **
.20 ***
-.21 ***
.11 *
.19 ***
.31 ***
.29 ***
.19 ***
.20 ***
-.24 ***
.37 ***
.60 ***
.68 ***
12 Purchase Intention
-.14 **
.06
.02
*
p< .05. **p< .01. ***p< .001
66
.02
-.16 **
-.26 ***
.22 ***
-.14 **
.16 **
Table 7
Pearson Correlations between the Study Variables for the United States Sample (N = 171)
Variables
1
2
3
4
5
6
7
8
9
10
11
1 Collectivism
2 Individualism
-.13
3 Guilt
-.23 **
.12
4 Quality
-.03
.19 *
5 Uniqueness
-.18 *
.15 *
6 Social Status
.20 *
.12
-.11
.31 ***
-.05
-.13
-.03
.13
7 Conspicuousness
-.04
.09
.17 *
-.34 ***
.38 ***
.57 ***
8 Self-Identity
-.08
.20 **
.07
.22 **
.29 ***
.13
.16 *
9 Self-Directed Pleasure
-.12
.28 ***
.13
.23 **
.27 ***
-.02
.06
.52 ***
-.02
-.16 *
.27 ***
.25 **
10 Self-Esteem
.16 *
.19 *
-.13
.26 **
11 Attitude
.02
.16 *
-.27 ***
.07
-.13
.03
.18 *
12 Purchase Intention
-.27 ***
-.22 **
.11
.41 ***
.35 ***
.20 *
.05
.06
.41 ***
.53 ***
.72 ***
.10
.03
-.19 *
*
p< .05. **p< .01. ***p< .001.
67
.32 ***
Table 8
Pearson Correlations between the Study Variables for the Saudi Arabia Sample (N = 277)
Variables
1
2
3
4
5
6
7
8
9
10
11
1 Collectivism
2 Individualism
.15
3 Guilt
.04
.01
4 Quality
.03
.21 **
.05
5 Uniqueness
.01
.23 ***
-.02
.07
6 Social Status
-.00
.12
-.06
-.08
.26 ***
-.02
-.15 *
.28 ***
7 Conspicuousness
.06
.18 **
8 Self-Identity
.18 **
.19 **
9 Self-Directed Pleasure
.06
.13 *
10 Self-Esteem
.23 ***
11 Attitudes
.15 *
12 Purchase Intention
-.01
.12 *
.26 ***
.07
-.08
.37 ***
.17 **
-.03
.25 ***
.08
.67 ***
-.05
-.11
-.04
-.19 **
-.26 ***
.48 ***
.24 ***
.08
.04
-.08
.31 ***
.37 ***
-.20
.14 *
.28 ***
.35 ***
.28 ***
.13 *
.24 ***
-.04
-.25 ***
.33 ***
.60 ***
.67 ***
-.19 **
-.36 ***
*
p< .05. **p< .01. ***p< .001.
68
.35 ***
-.13 *
.17 **
Testing for moderation. To test for moderation, simultaneous group analyses
were conducted (Byrne, 2010): United States vs. Saudi Arabia, low Collectivism vs. high
Collectivism, low Individualism vs. high Individualism, and low Guilt vs. high Guilt. In
the simultaneous group analyses, the two groups were compared and all parameters were
free to vary; this served as the baseline model. Thereafter, the path between the
exogenous variable or construct to the endogenous construct was fixed; the chi-square
statistic of this model was compared to the chi-square statistic of the baseline model. If
the change in chi-square between the two models exceeded 3.84 (i.e., the critical chisquare for one degree of freedom), it was assumed that the path coefficients differed
across groups and that the specific relationship was moderated by the factor under
consideration.
4.4.2 Findings for the Proposed Measurement Model
The initial test of the proposed measurement model resulted with a non-positive
definite matrix. Examination of the output revealed that the Functional Value construct
was highly correlated with the Social Value, Attitude towards Luxury, and Luxury
Purchase Intention constructs. Therefore, the Functional Value and Social Value
constructs were collapsed into a single construct. According to Gordon (2012), if the
variables are multiple indicators for the same construct and they are strongly correlated,
they can be collapsed into a single measure
The revised measurement model is depicted in Figure 4; its fit indices are
summarized in Table 9.The findings reveal that, except for the SRMR, none of the fit
indices met their respective threshold values. Thus, the model did not fit the data well.
69
Accordingly, the model was revised based on two criteria. First, per Hair, Black, Babin,
and Anderson (2010), standardized factor loadings should be .50 or higher. Therefore,
indicator variables whose standardized factor loadings fell below this criterion were
deleted; but for purposes of stability (Kline, 2011), indicator variables were not deleted if
the construct would only have two indicator variables. Thus, only the Quality Value
indicator variable was removed. Second, the modification indices (MI) were examined.
Per Byrne (2010), a high MI indicates that the variable is loading onto constructs other
than the construct they are hypothesized to load onto. Based on this criterion, the third
Luxury Purchase Intention item was deleted (MI = 13.73).
Table 9
Fit Indices and Their Threshold Values
Index
Threshold
Reference
Incremental Fit Index (IFI)
> .95
Hu &Bentler, 1999
Comparative Fit Index (CFI)
> .95
Hu &Bentler, 1999
Root Mean Square Error of Approximation (RMSEA)
< .06
Brown &Cudeck, 1993
Standardized root mean square residual (SRMR)
< .08
Hu &Bentler, 1999
Note. See Exploratory Factor Analysis Results on pages 73.
The best-fitting measurement model is illustrated in Figure 5; its fit indices are
presented in Table 10 and 11. This model fit the data better as most of its index values
were close to acceptable. Further, all its indicator variables loaded on significantly to
their respective constructs. Therefore, this model was used in subsequent procedures.
70
Table 10
Fit Indices for the Measurement Models
Index
Revised
Chi-square
308.06
Degrees of freedom
84
Probability level
.00
IFI
.90
CFI
.90
RMSEA
.08
Lower bound 90% CI
.07
Upper bound 90% CI
.09
P-close
.00
SRMR
.07
Best-Fitting
173.35
59
.00
.94
.94
.07
.06
.08
.01
.05
Table 11
Unstandardized and Standardized Coefficients for the Best-Fitting Measurement Model
Variables
B
SE
β
Functional and Social Value:
Uniqueness
.36
.04
.42 ***
Status
.80
.05
.72 ***
1.00
--
Self-Identity
1.70
.24
.65 ***
Self-Directed Pleasure
2.10
.30
.77 ***
Self-Esteem
1.00
--
Attitude 1
1.03
.12
.60 ***
Attitude 2
1.29
.14
.77 ***
Attitude 4
1.00
--
Intent 1
.99
.06
.75 ***
Intent 2
.95
.07
.70 ***
Intent 4
1.02
.06
.77 ***
Intent 5
1.00
--
Conspicuousness
.84
Individual Value:
.43
Attitude toward Luxury:
.59
Luxury Purchase Intention:
*
p< .05. **p< .01. ***p< .001.
71
.76
Figure 4.Standardized coefficients for the revised measurement model.
72
Figure 5.Standardized coefficients for the best-fitting measurement model.
73
4.4.3 Exploratory Factor Analysis on the Measurement Model
An exploratory factor analysis (EFA) was run to see what would be produced in a
measurement model without any prior predictions for the model in Figure 4 above. An
EFA was run for the full sample (N = 448), United States only (n = 171), and Saudi
Arabian sample (n = 227).
Initial Diagnostics
The full sample. The KMO was greater than .5 at .855 (N = 448). Kaiser (1974)
stated that that values between values between .7 and .8 are good and give confidence
that the sample size (N=448)‎was‎good‎enough‎for‎the‎EFA.‎‎Bartlett’s‎Measure‎tests‎the‎
null hypothesis that the original correlation matrix is an identity matrix. The test was
statistically significant and the null hypothesis was rejected. This means there are some
correlational‎relationships‎between‎the‎variables‎to‎include‎in‎the‎analysis.‎‎Bartlett’s‎test‎
was significant at 2309.613, p <.0001.
The United States sample. The KMO was .812 (N = 171). Kaiser (1974) stated
that that values between values between .7 and .8 are good and give confidence that the
sample‎size‎was‎good‎enough‎for‎the‎EFA.‎‎Bartlett’s‎Measure‎tests‎the‎null‎hypothesis‎
that the original correlation matrix is an identity matrix. The test was statistically
significant and the null hypothesis was rejected. This means there are some correlational
relationships‎between‎the‎variables‎to‎include‎in‎the‎analysis.‎‎Bartlett’s‎test‎was‎
significant at 872.535, p <.0001.
The Saudi Arabian sample. The KMO was .812 (N = 277). Values between
values between .7 and .8 are good and give confidence that the sample size was good
enough‎for‎the‎EFA.‎‎Bartlett’s‎Measure‎tests‎the‎null‎hypothesis‎that‎the‎original‎
74
correlation matrix is an identity matrix. The test was statistically significant and the null
hypothesis was rejected. This means there are some correlational relationships between
the‎variables‎to‎include‎in‎the‎analysis.‎‎Bartlett’s‎test‎was‎significant‎at‎1537.678,‎p
<.0001.
Eigenvalues, Variance, and Scree Plot
The full sample. There were three eigenvalues greater than 1 found when the
principle components analysis (PCA) was run which suggests a three factor solution and
this agreed with the scree plot (N = 448). The first component had an eigenvalue of
4.665 and explained 31.103% of the variance followed by the second component had an
eigenvalue of 2.512 with 16.746% of the variance explained and the third component had
an eigenvalue of 1.163 with 7.753% of the variance explained. This PCA accounted for a
total of 55.602% of the measurement model variance in a three factor solution.
The United States sample. There were four eigenvalues greater than 1 found
when the principle components analysis (PCA) was run which suggests a four factor
solution which agrees with the scree plot (N = 171). The first component had an
eigenvalue of 4.596 and explained 30.604% of the variance followed by the second
component had an eigenvalue of 2.187 with 14.579% of the variance explained, the third
component had an eigenvalue of 1.569 with 10.458% of the variance explained, and the
fourth component had an eigenvalue of 1.064 with 7.091% of the variance explained.
This PCA accounted for a total of 62.768% of the measurement model variance in a four
factor solution.
The Saudi Arabian sample. There were three eigenvalues greater than 1 found
when the principle components analysis (PCA) was run which suggests a three factor
75
solution and this agreed with the scree plot (N = 277). The first component had an
eigenvalue of 4.820 and explained 32.186 % of the variance followed by the second
component had an eigenvalue of 2.709 with 18.602 % of the variance explained and the
third component had an eigenvalue of 1.064 with 7.093 % of the variance explained.
This PCA accounted for a total of 57.291% of the measurement model variance in a three
factor solution.
Measurement Model from EFA
The full sample. A varimax rotation (N = 448) was used to clarify item loadings
into the three factor solution in Table X. The functional and social value factor did not
hold up in the EFA. The factors of Individual Value, Luxury Attitudes, and Luxury
Intent to Purchase all held with their initial defining questions. The conspicuous, status,
and unique items loaded onto Luxury Intent to Purchase Factor and the TQuality item
loaded onto the Individual Value Factor.
Table 12
Varimax Rotated Solution for the Full Sample (N = 448)
___________________________________________________________________
Component
1
2
__________________________________________________
Luxury Purchase Intention 5
.785
Luxury Purchase Intention 1
.772
CONSPIC
.768
Luxury Purchase Intention 4
.765
Luxury Purchase Intention 2
.736
Luxury Purchase Intention 3
.710
STATUS
.662
UNIQUE
.547
TIDENT
.811
76
3
Table 12 continued
Component
1
2
TDIRECT
.793
TQUALITY
.528
TESTEEM
.421
3
TATT2
.785
TATT4
.756
TATT1
.684
_____________________________________________________________________
The United States sample. A varimax rotation (N = 171) was used to clarify item
loadings into the four factor solution in Table XI. The four factors in the measurement
model of Functional and Social Value, Individual Value, Luxury Attitudes, and Luxury
Intent to Purchase all held with their most of their initial defining questions. The
conspicuous and status items loaded again into the Luxury Intent to Purchase Factor,
Luxury Attitudes did not change, Individual Value kept two items and had the unique
item load into it. Finally, the items of Testeem and the TQuality loaded into and
unknown factor.
Table 13
Varimax Rotated Solution for The measurement Model with The United States Sample
________________________________________________________________
Component
1
LUXE3
.795
CONSPIC
.759
LUXE4
.745
2
77
3
4
Table 13 continued
Component
1
STATUS
.709
LUXE2
.703
LUXE5
.655
LUXE1
.501
2
TATT2
.771
TATT1
.759
TATT4
.717
3
TDIRECT
.815
TIDENT
.803
4
TESTEEM
.712
UNIQUE
.555
-.568
TQUALITY
.509
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
______________________________________________________________________
The Saudi Arabian sample. A varimax rotation (N = 277) was used to clarify
item loadings into the three factor solution in Table XII. The functional and social value
factor did not hold up in the EFA. The factors of Individual Value, Luxury Attitudes, and
Luxury Intent to Purchase mostly held with their initial defining questions. The
conspicuous, status, and unique items loaded onto Luxury Intent to Purchase Factor
again. Luxury attitudes held its three questions and added Testeem. Individual Value
held two of its items and added the TQuality item.
78
Table 14
Varimax Rotated Solution for The measurement Model with The Saudi Arabian Sample
______________________________________________________________________
Component
1
2
LUXE5
.810
CONSPIC
.772
LUXE1
.764
LUXE4
.761
LUXE3
.745
STATUS
.724
LUXE2
.698
UNIQUE
.428
TATT4
.805
TATT2
.799
TATT1
.563
TESTEEM
.558
3
TIDENT
.808
TDIRECT
.667
TQUALITY
.664
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.
4.4.4 Findings for the Structural Model
The structural model is depicted in Figure 6. As shown in Table 12, this model
had a close to acceptable fit. The findings in Table 13 reveal that Functional and Social
Value positively predicted Attitudes toward Luxury,‎β‎=‎.57,‎p< .001; it also significantly
79
predicted Luxury Purchase Intentions,‎β‎=‎.95,‎p< .001. Individual Value positively
predicted Attitudes toward Luxury Brands,‎β‎=‎.41,‎p< .001; but it negatively predicted
Luxury Purchase Intentions,‎β‎=‎-.13, p< .05. Lastly, Attitude towards Luxury negatively
predicted Luxury Purchase Intentions,‎β‎=‎-.17, p< .05. The three constructs explained
84.2% of the variance of Luxury Purchase Intentions.
Figure 6.Standardized path coefficients for the structural model (whole sample).
United States. The structural model for the United States sample is shown in
Figure 7. As shown in Table 12, this model had mediocre fit. The findings in Table 13
reveal that Functional and Social Value positively predicted Attitude toward Luxury,‎β‎=‎
.52, p< .001; it also significantly predicted Luxury Purchase Intentions,‎β‎=‎.98,‎p< .001.
Individual Value, however, did not predict Attitude toward Luxury Brands and Luxury
Purchase Intention. Likewise, Attitude toward Luxury Brands did not significantly
predict Luxury Purchase Intention.
80
Figure 7.Standardized path coefficients for the structural model (United States).
Saudi Arabia. The structural model for the Saudi Arabian sample is shown in
Figure 8. As shown in Table 12, this model had close to acceptable fit. The findings in
Table 13 reveal that Functional and Social Value positively predicted Attitude toward
Luxury Brands,‎β‎=‎.71,‎p< .001; it also significantly predicted Luxury Purchase
Intention,‎β‎=‎.89,‎p< .001. Individual Value positively predicted Attitude toward Luxury
Brands,‎β‎=‎.55,‎p< .001; but it did not significantly predict Luxury Purchase Intention.
Similarly, Attitude toward Luxury Brands did not significantly predict Luxury Purchase
Intention.
Figure 8. Standardized path coefficients for the structural model (Saudi Arabia).
81
Table 15
Fit Indices for the Structural Models
Index
Whole
United
Saudi
Sample
States
Arabia
Chi-square
173.35
151.52
154.73
Degrees of freedom
59
59
59
Probability level
.00
.00
.00
IFI
.94
.87
.93
CFI
.94
.86
.92
RMSEA
.07
.10
.08
Lower bound 90% CI
.06
.08
.06
Upper bound 90% CI
.08
.12
.09
P-close
.01
.00
.00
.05
.09
.08
SRMR
Comparison of countries. Simultaneous group procedures were conducted to
determine whether the path coefficients in the United States sample differed significantly
from the path coefficients in the Saudi Arabian sample. The findings in Table 13 reveal
that path coefficients did not differ significantly across countries.
From the result it looks like the comparison was between females in Saudi Arabia
to both males and females in the US. Since there are so ‎few males in Saudi sample, we
cannot make a separate comparison of this group with the males in the US. But, ‎we can
compare females in the two countries. Thus, females from Saudi Arabia were compared
with females from US.
82
Table 16
Unstandardized and Standardized Path Coefficients for the Structural Models
Whole Sample
United States
Saudi Arabia
B
SE
β
B
SE
β
B
SE
β
Δχ2
.17
.02
.57 ***
.14
.03
.52 ***
.21
.03
.71 ***
.29
1.06
.10
.95 ***
.97
.15
.98 ***
.98
.15
.89 ***
-1.37
Attitude toward Luxury
.62
.13
.41 ***
.14
.19
.08
.75
.16
.55 ***
3.00
Luxury Purchase Intention
-.74
.34
-.13 *
-.98
.53
-.15
-.76
.52
-.15
-1.30
Attitude toward Luxury to Intention
-.64
.28
-.17 *
-.16
.36
-.05
-.51
.47
-.14
-1.08
Path
Functional and Social Value to:
Attitude toward Luxury
Luxury Purchase Intention
Individual Value to:
Note.‎Critical‎Δχ2(1) = 3.84, p< .05.
*
p< .05. **p< .01. ***p< .001.
83
4.4.5 Findings for the Structural Model (females only)
United States. The structural model for the United States sample is shown in Figure 9.
As shown in Table 14, this model had mediocre fit. It also yielded a negative error
variance; thus, the solution was not admissible. Therefore, the path coefficients could not
be evaluated for significance.
Figure 9. Standardized path coefficients for the structural model (United States females).
Saudi Arabia. The structural model for the Saudi Arabian sample is shown in Figure 10.
As shown in Table 14, this model had close to acceptable fit. The findings in Table 15
reveal that Functional and Social Value positively predicted Attitude toward Luxury
brands,‎β‎=‎.71,‎p < .001; it also significantly predicted Luxury Purchase Intention,‎β‎=‎
.86, p < .001. Individual Value positively predicted Attitude toward Luxury Brands,‎β‎=‎
.53, p < .001; but it did not significantly predict Luxury Purchase Intention. Similarly,
Attitude toward Luxury Brands did not significantly predict Luxury Purchase Intention.
84
Figure 10. Standardized path coefficients for the structural model (Saudi Arabian
females).
Table 17
Fit Indices for the Structural Models
Index
United
Saudi
States
Arabia
Chi-square
103.99
150.82
Degrees of freedom
59
59
Probability level
.00
.00
IFI
1.76
2.56
CFI
.86
.92
RMSEA
.10
.08
Lower bound 90% CI
.07
.06
Upper bound 90% CI
.13
.09
P-close
.01
.00
.11
.08
SRMR
85
Table 18
Unstandardized and Standardized Path Coefficients for the Structural Model (Saudi
Arabian Females Only)
Variables
B
SE
β
Functional and Social Value to:
Attitude toward Luxury
.21
.03
.72
***
Luxury Purchase Intention
.96
.15
.86
***
Attitude toward Luxury
.71
.16
.53
***
Luxury Purchase Intention
-.90
.53
-.17
-.50
.49
-.13
Individual Value to:
Attitude toward Luxury to Intention
*
p < .05. ** p < .01. *** p < .001.
4.4.6 Testing the Mediating Effect of Luxury Brand Attitudes
As noted earlier, a variable is deemed a mediator when the following criteria are
met (Kline, 2011): the independent variable significantly predicts the mediator; the
mediator significantly predicts the dependent variable; and the indirect effect is
statistically significant but the direct effect is not statistically significant. Bootstrapping
procedures, with 95% bias-corrected confidence intervals (CI) were conducted to
determine the significance of the direct and indirect effects.
Functional and social values. The findings in Table 13 reveal that Functional
and Social Values significantly predicted Attitude toward Luxury,‎β‎=‎.57,‎p< .001. Thus,
the first criterion for mediation was fulfilled. In addition, Attitude toward Luxury Brand
significantly predicted Luxury Purchase Intentions,‎β‎=‎-.17, p = .05; therefore, the
second criterion for mediation was met. As shown in Table 16, the indirect effect of
86
Functional and Social Values on Purchase Intention was statistically significant
(p< .01); the third criterion for mediation was fulfilled. But the direct effect was
statistically significant (p< .01) and the fourth criterion was not met. Therefore, Attitude
toward Luxury is a partial mediator of the relationship between Functional and Social
Values and Luxury Purchase Intention.
Individual values. The findings in Table 13 reveal that Individual Values
significantly predicted Attitude toward Luxury,‎β‎=‎.41,‎p< .001. Thus, the first criterion
for mediation was fulfilled. In addition, Attitude toward Luxury significantly predicted
Luxury Purchase Intention,‎β‎=‎-.17, p = .05; therefore, the second criterion for mediation
was met. As shown in Table 16, the indirect effect of Individual Values on Luxury
Purchase Intention was statistically significant (p< .05); the third criterion for mediation
was fulfilled. Further, the direct effect was not statistically significant; thus, the fourth
criterion was not met. Therefore, Attitude toward Luxury partially mediated the
relationship between Individual Values and Luxury Purchase Intention.
Table 19
Standardized Direct and Indirect Effects of the Independent Variables
Relationship
Model w/
Model w/o
Direct Effect Direct Effect
Functional and Social Values on Purchase Intention
Total effect
.85
**
.32
**
Direct effect
.95
**
--
Indirect effect
-.10
*
.32
**
Total effect
-.20
**
.16
*
Direct effect
-.13
Individual Values on Purchase Intention
Indirect effect
-.07
*
p< .05. **p< .01. ***p< .001
87
-*
.16
*
4.4.7 Testing for Moderation
Collectivism. The whole sample was split into two groups; respondents whose
mean Collectivism score was four or lower were assigned to the low Collectivism group;
those whose mean score was higher than four were assigned to the high Collectivism
group. Simultaneous group analyses were then conducted. Because the moderation
hypotheses pertained only to the value measures, a different set of models was tested. The
models for the low and high Collectivism groups are depicted in Figure 11. The findings
in Table 17 reveal that collectivism did not moderate any of relationships between value
and Luxury Purchase Intention.
Table 20
Standardized Path Coefficients to Luxury Purchase Intention within Low and High
Collectivism Groups
Independent Variable
Low‎β
High‎β
Δχ2
Quality
-.06
-.16 **
2.16
Uniqueness
.23 ***
.24 ***
.42
Social status
.16 *
.31 ***
2.48
Conspicuousness
.52 ***
.43 ***
1.48
Self-identity
-.04
-.14 **
Self-directed pleasure
-.14 *
-.09
.39
.02
-.04
.78
Self-esteem
Note.‎Critical‎Δχ2(1) = 3.84, p< .05.
*
p< .05. **p< .01. ***p< .001.
88
1.69
Figure 11.Standardized path coefficients for the low (above) and high (below)
collectivism groups.
89
Individualism. The whole sample was split into two groups; respondents whose
mean Individualism score was 3.63 or lower were assigned to the low Individualism
group; those whose mean score was higher than 3.63 were assigned to the high
Individualism group. Simultaneous group analyses were then conducted. The models for
the low and high Individualism groups are shown in Figure 12. The findings in Table 18
reveal that Individualism significantly moderated the relationship between
Conspicuousness and Luxury Purchase Intention, Δχ2(1) = 6.92, p< .01. Specifically, the
relationship between Conspicuousness and Luxury Purchase Intention was stronger
within‎the‎high‎individualism‎group‎(β‎=‎.59,‎p< .001) than it was in the low
individualism‎group‎(β‎=‎.35,‎p< .001).
Table 21
Standardized Path Coefficients to Luxury Purchase Intentions within Low and High
Individualism Groups
Independent Variable
Low‎β
High‎β
Δχ2
Quality
-.15 **
-.08
.35
Uniqueness
.26 ***
.20 ***
.39
Social status
.29 ***
.17 **
1.03
Conspicuousness
.35 ***
.59 ***
6.92 **
Self-identity
-.11
-.11
.02
Self-directed pleasure
-.13 *
-.08
.25
.01
-.07
1.17
Self-esteem
Note.‎Critical‎Δχ2(1) = 3.84, p< .05.
*
p< .05. **p< .01. ***p< .001.
90
Figure 12.Standardized path coefficients for the low (above) and high (below)
individualism groups.
91
Guilt. The whole sample was split into two groups; respondents whose Guilt score
was three or lower were assigned to the low Guilt group; those whose score was higher
than three were assigned to the high Guilt group. Simultaneous group analyses were then
conducted. The models for the low and high Guilt groups are shown in Figure 13. The
findings in Table 19 reveal that Guilt significantly moderated the relationship between
Uniqueness and Luxury Purchase Intentions, Δχ2(1) = 5.54, p< .05. Specifically, the
relationship between Uniqueness and Luxury Purchase Intention was stronger within the
high‎guilt‎group‎(β‎=‎.32,‎p<‎.001)‎than‎it‎was‎in‎the‎low‎guilt‎group‎(β‎=‎.16,‎p< .001).
Table 22
Standardized Path Coefficients to Luxury Purchase Intentions within Low and High Guilt
Groups
Independent Variable
Low‎β
High‎β
Δχ2
Quality
-.08
-.14 *
.73
Uniqueness
.16 ***
.32 ***
5.54 *
Social status
.26 ***
.19 **
.21
Conspicuousness
.54 ***
.43 ***
.41
Self-identity
-.04
-.18 **
Self-directed pleasure
-.13 *
-.05
.47
Self-esteem
-.05
.03
.85
Note.‎Critical‎Δχ2(1) = 3.84, p< .05.
*
p< .05. **p< .01. ***p< .001.
92
3.19
Figure 13.Standardized path coefficients for the low (above) and high (below) guilt
groups.
93
4.5 Summary
In this chapter, the screening procedures of normality and outliers were
described. ‎The statistics describing the sample, brands purchased and study variables
were presented. ‎Also, the correlations between the study variables were examined. In the
last section, the results testing the hypothesis were summarized.‎
94
CHAPTER 5: DISCUSSION AND CONCLUSIONS
The overall objective of this study was to compare Western and Middle Eastern
culture‎regarding‎consumers’ luxury purchase intention. Most researchers agree that
cultural features (individualism and collectivism) impact luxury purchase intention (Bian
& Forsythe, 2012; Hennigs et al., 2012; Park, Ko, & Kim, 2010; Shukla, 2011; Shukla &
Purani, 2012). While most previous studies have compared Western to Eastern culture
(Bian & Forsythe, 2012; Park, Ko, & Kim, 2010; Shukla, 2011; Shukla & Purani, 2012),
this study compared Western culture to Middle Eastern culture (United States vs. Saudi
Arabia). In addition, this study addressed the impact of luxury values and luxury
purchase intention. Moreover, this study uniquely addressed consumer guilt as a
moderating variable and attitude was assessed as a mediating variable.
In this chapter, a discussion of the major findings and hypotheses testing is
presented. In the first part of the chapter, the examination of functional, social, and
individual values are discussed. Secondly, the impact of the moderating variables of
cultural dimension and consumer guilt are assessed in relation to luxury purchase
intention. Thirdly, the impact of attitude is discussed as a mediating variable. Finally, the
implications of the study are provided, as well as the study’s‎limitations and suggestions
for future research.
5.1 Discussion of Major Findings and Hypotheses Testing
Many studies have focused on Eastern and Western culture in terms of luxury
purchase intention. However, this is the first study known to this researcher that focuses
on the Middle Eastern culture specifically, while addressing the concept of consumer
95
guilt. The main research question was Do individualist and collectivist consumers value
luxury brands differently? Table 20 presents a summary of the results of the hypotheses
testing based on this research question.
Table 23‎
Results of Hypotheses Testing
Hypothesis
Results
H1: There are relationships between a) quality value and luxury
purchase intention and b) uniqueness ‎value and luxury purchase
intention.
H1a supported
H1b supported
H2: There are relationships between a) social status value and
luxury purchase intention and b) ‎conspicuous value and luxury
purchase intention
H2a supported
H2b supported
H3: There are relationships between a) self-identity and luxury
purchase intention, b) self-directed ‎pleasure and luxury purchase
intention, and c) self-esteem and luxury purchase intention.
H3a not supported
H3b not supported
H3c not supported
H4a: The relationship between quality value and luxury purchase
intention is moderated based on the ‎respondent’s‎cultural‎dimension‎
(collectivism vs. individualism) and consumer guilt.
H4a not supported
H4b: The relationship between uniqueness value and luxury
purchase intention is ‎moderated based on the respondent’s‎cultural‎
dimension and consumer guilt.
H4b partially supported
H5a: The relationship between social status value and luxury
purchase intention is moderated based on the respondent’s‎cultural
dimension and consumer guilt.
H5a not supported
H5b: The relationship between conspicuous value and luxury
purchase intention is moderated based on ‎the‎respondent’s‎cultural‎
dimension and consumer guilt.
H5b partially supported
H6a: The relationship between self-identify and luxury purchase
intention is moderated based on the ‎respondent’s‎cultural‎dimension
and consumer guilt.
H6a not supported
96
Table 23 continued
Hypothesis
Results
H6b: The relationship between self-directed pleasure and luxury
purchase intention is moderated based ‎on the‎respondent’s‎cultural‎
dimension and consumer guilt.
H6b not supported
H6c: The relationship between self-esteem and luxury purchase
intention is moderated based on the ‎respondent’s‎cultural‎dimension
and consumer guilt.
H6c not supported
H7a: The relationship between quality value and luxury purchase
intention is mediated based on the ‎respondent’s‎attitude‎toward‎
luxury.
H7a not supported
H7b: The relationship between uniqueness value and luxury
purchase intention is mediated based on the ‎respondent’s‎attitude‎
toward luxury.
H7b not supported
H8a: The relationship between social status value and luxury
purchase intention is mediated based on ‎the respondent’s‎attitude‎
toward luxury.
H8a not supported
H8b: The relationship between conspicuous value and luxury
purchase intention is mediated based on ‎the respondent’s‎attitude‎
toward luxury.
H8b not supported
H9a: The relationship between self-identify and luxury purchase
intention is mediated based on the ‎respondent’s‎attitude‎toward‎
luxury.
H9a supported
H9b: The relationship between self-directed pleasure and luxury
purchase intention is mediated based ‎on the respondent’s‎attitude‎
toward luxury.
H9b supported
H9c: The relationship between self-esteem and luxury purchase
intention is mediated based on the ‎respondent’s‎attitude‎toward
luxury.
H9c supported
97
Testing the hypotheses via structural equation modeling allowed the researcher to
assess the relationships among the constructs simultaneously—and thus allowed the
researcher to control for all other effects.
It was hypothesized that there would be a relationship between Functional Value
(Quality and Uniqueness) and Luxury Purchase Intention (H1). Also, it was hypothesized
that there would be a correlation between Social Value (Status and Conspicuousness) and
Luxury Purchase Intention (H2). The findings reveal that Functional and Social value
significantly predicted Luxury Purchase Intention,‎β‎=‎.95,‎p < .001. Therefore, the first
two hypotheses were supported. This confirmed the previous studies that showed the
strong relationship between quality and need for uniqueness and luxury brands (Alireza et
al., 2011; Truong & McColl, 2011). This also reinforced the previously stated result that
luxury reflects conspicuous consumption and status, and people purchase luxury products
mainly to display their wealth (Han et al., 2010; Teck-Yong & Bogaert, 2010). Thus,
these results confirm that consumers have a desire to differentiate themselves from
others, and may use luxury products to exhibit this. Moreover, the results confirm that
quality is a key factor that contributes to purchase intention toward luxury.
It was hypothesized in (H3) that there would be a relationship between Individual
Value (Self-Identity, Self-Directed Pleasure, and Self-Esteem) and Luxury Purchase
Intention. The findings indicate that Individual Values negatively predicted Luxury
Purchase Intentions,‎β‎=‎-.13, p < .05. Therefore, the third hypothesis was not supported.
A previous study of Shukla & Purani (2012) showed that there is a negative relationship
between self-directed values and luxury, which supports the findings of this
study. However, several studies by Shaw & Shiu (2002) and Mandel & Smeesters (2008)
98
show a relationship between self-identity and behavioral intention and self-esteem and
consumption, respectively. The results of this study show otherwise. Therefore,
consumers may not be impacted by individual and emotional values to drive their luxury
purchases. In addition, identifying personally with a luxury brand may not solely
motivate them to purchase a luxury product.
Hypothesis four (H4a) stated that the relationship between Functional Value
(Quality) and Luxury Purchase Intention would be moderated by Cultural Dimension and
Consumer Guilt. This hypothesis was not supported, as the findings reveal that Cultural
Dimension and Guilt did not moderate the relationship between Quality and Luxury
Purchase Intention. This illustrates how quality is a strong variable which may not be
impacted by the social theories of individualism and collectivism. Moreover, this result
suggests that anticipatory guilt may not be a factor if a consumer perceives a product to
be of high quality and worth.
Hypothesis four (H4b) stated that the relationship between Functional Value
(Uniqueness) and Luxury Purchase Intention would be moderated by Cultural Dimension
and Consumer Guilt. This hypothesis was partially supported. Cultural Dimension did not
act as a moderating variable while Guilt moderated the relationship between Uniqueness
and Luxury Purchase Intention,‎Δχ2(1) = 5.54, p < .05. The relationship between
Uniqueness and Purchase Intention was‎stronger‎within‎the‎high‎guilt‎group‎(β‎=‎.32,‎p <
.001)‎than‎it‎was‎in‎the‎low‎guilt‎group‎(β‎=‎.16,‎p < .001). This is consistent with
Steenhaut‎and‎Kenhove’s (2006) results which showed how the anticipated guilt
mediated the relationship between consumers’ ethical beliefs‎and‎consumers’‎intentions.‎
This confirmed that guilt is a noted factor in the luxury purchase intention process,
99
especially among the high guilt group, as they had a higher level of uniqueness. That is,
because this group desires a higher level of uniqueness and desires a more distinctive
product, they may possess more apprehension in anticipation of their purchase.
The fifth hypothesis (H5a) stated that the relationship between Social Value
(Social Status) and ‎Luxury Purchase Intention would be moderated by Cultural
Dimension and Consumer Guilt. The ‎findings reveal that culture dimension and Guilt did
not significantly moderate the relationship ‎between Social Status and Luxury purchase
Intention. ‎
The fifth hypothesis (H5b) stated that the relationship between Social Value
(Conspicuousness) and Luxury Purchase Intention would be moderated by Cultural
Dimension and Consumer Guilt. The findings indicate that Individualism moderated the
relationship between Conspicuousness and Luxury Purchase Intention,‎Δχ2(1) = 6.92, p <
.01. The relationship between Conspicuousness and Luxury Purchase Intention was
stronger‎within‎the‎high‎individualism‎group‎(β‎= .59, p < .001) than it was in the low
individualism‎group‎(β‎=‎.35,‎p < .001). Thus, individualistic consumers tend to consume
conspicuously more than collectivistic consumers. This result is consistent with Yim et
al.’s‎(2014)‎study‎which‎emphasized that consumers who are more individualistic tend to
be more positively responsive toward luxury brands.‎‎The need for social status among
individualistic consumers is what led them to display their possessions and consume
conspicuously. However, the findings suggest that Guilt did not moderate the relationship
between Conspicuousness and Luxury purchase Intention. Thus, this hypothesis was
partially supported, and suggests that guilt is not a factor among conspicuous
100
consumption consumers, since their goal is to display their wealth through their luxury
products.
It was hypothesized (H6) that the relationship between Individual Value (SelfIdentity, Self-Directed Pleasure, and Self-Esteem) and Luxury Purchase Intention would
be moderated by Cultural Dimension and Consumer Guilt. The findings reveal that the
sixth hypothesis was not supported. Therefore, there is a negative direct and indirect
relationship between Individual Value and Luxury Purchase Intention. ‎This is consistent
with Hennigs et al. (2012) study which showed a negative impact of individual values on
luxury consumption across cultures. As results showed from (H3), there was no
relationship between Individual Value and Luxury Purchase Intention. The results from
(H6) show that assessing the moderating variables of Culture Dimension and Consumer
Guilt did not impact the relationship. Future studies should consider examining this
relationship.
Hypotheses seven (H7) and eight (H8) stated that the relationship between
Functional and Social Values and Luxury Purchase Intention would be mediated by
respondents’‎Attitudes toward Luxury. The findings indicate that the seventh and eighth
hypotheses were not supported. This result did not support the previous study of Zhang &
Kim (2013) which stated that purchase intention for luxury goods were affected by
consumers' attitude. Instead, the results of this study suggest that a positive attitude
toward luxury does not impact the relationship between Functional and Social Values as
it relates to Luxury Purchase Intention. Future studies should consider investigating the
relationship between attitude and luxury purchase intention further.
101
It was hypothesized (H9) that the relationship between Individual Value and
Luxury Purchase Intention would‎be‎mediated‎by‎respondents’‎Attitude‎toward‎Luxury.‎
The findings reveal that all four criteria for mediation were met. First, Individual Values
significantly predicted Attitude toward Luxury,‎β‎=‎.41,‎p < .001. In addition, Attitude
toward Luxury significantly predicted Luxury Purchase Intention,‎β‎=‎-.17, p = .05.
Further, the indirect effect of Individual Values on Luxury Purchase Intention was
statistically significant (p < .05). Lastly, the direct effect was not statistically significant.
Therefore, Attitude toward Luxury mediated the relationship between Individual Values
and Luxury Purchase Intentions. Accordingly, the ninth hypothesis was supported. As
previously ‎stated in Zhang & Kim’s (2013) study,‎Chinese‎consumers’‎purchase intention
for luxury fashion goods was affected by their attitude towards buying such goods, which
confirms‎the‎role‎of‎attitude‎in‎the‎relationship‎between‎an‎individual’s‎value‎and‎luxury‎
purchase intention. This suggests that if consumers have a positive attitude toward luxury
products, then this may impact their self-oriented values toward their luxury purchase
intention.
5.2 Conclusion
With the rise in wealth and disposable income, luxury product consumption has
increased globally. By comparing Western and Middle Eastern cultures in terms of
consumers’‎luxury‎purchase‎‎intention, this can give marketers of luxury brands a greater
understanding of how they should target different cultures. Thus, this study provided an
insight into the differences between consumer groups.
A cross cultural comparison‎showed that functional and social values can predict
luxury purchase intention, and that guilt moderates the relationship between uniqueness
102
value and luxury purchase intention. Individualism, in the same token, moderated the
correlation between conspicuous consumption and luxury purchase intention. Attitude
mediated the relationship between individual values and luxury purchase intention, but
did not mediate the relationship between functional and social values as it relates to
luxury purchase intention.
Despite the limitations of this study, this study indicates that it is important for
luxury marketers to understand the differences between cultures. Specifically, this
difference was evident among (United State) consumers with high individualism, as
conspicuous consumption had more of an impact on their purchase intention versus
consumers with high collectivism (Saudi Arabia).
5.3 Theoretical Implications
This research contributed to the luxury merchandising literature by ‎highlighting two
important points. First, the study identifies the differences between Western and Middle
Eastern cultures by comparing US and Saudi consumers. This is the first study known to
this researcher that compared those two specific cultures regarding luxury brand
intentions. Most previous research studies (Bian & Forsythe, 2012; Hennigs et al., 2012;
Park, Ko, & Kim, 2010; Shukla, ‎2011; Shukla & Purani, 2012) have compared Western
culture with Eastern Asian cultures ‎regarding luxury brand consumption. Since Saudi
consumers, just as other Arabian Gulf consumers, have shown an increased demand for
luxury goods in the last few years ‎(Larenaudie, 2008), this emerging market has to be
investigated and compared with other markets ‎to improve target marketing and sales for
this demographic‎.
103
This study also expands on previous research by addressing consumer guilt as a
moderating variable. Although consumer guilt is highly correlated with luxury due to the
high price of the products, consumer guilt has rarely been researched in the field of
luxury. Consumer guilt affects their decisions either before, during, or after the
decision ‎(Lin‎&‎Xia,‎2009;‎Özhan‎&‎Kazançoğlu,‎2010). Specifically, this study assessed
anticipatory guilt, and showed that consumers who have a desire for uniqueness may
experience a high level of guilt. A consumer may like a luxury product but choose not to
buy it to avoid feeling guilty if the product is not distinctive enough for them. This
suggests that researchers in luxury marketing need to pay more attention to the impact of
consumer guilt, including anticipatory, reactive, and proceeding guilt‎. And further studies
on this variable should be done.
5.4 Managerial Implications
The findings of this study provided some strategic implications for luxury brand
retailers in both the United States and Saudi markets. The top three luxury brands
preferred by United States consumers were Ralph Lauren, Calvin Klein, and Michael
Kors, and the top three luxury brands preferred by Saudi consumers were Chanel,
Christian Dior, and Louis Vuitton. Thus, marketers of these top brands should continue
their brand positioning and maintain their performance. In that same token, other luxury
brands can learn from the top brands noted by consumers in this study, and assess the
reasons behind higher preferences for these brands.
Although luxury brand producers should consider all luxury value dimensions,
this study suggests that they need to especially emphasize the social and functional
aspects of luxury products when targeting both cultures. However, it is evident given the
104
results of this study that social values have a greater impact among high individualism
consumers, especially as it relates to conspicuous consumption‎. Accordingly,
individualistic consumers have higher need in displaying their luxury brands logos. Thus,
social image may be an important consideration in luxury marketing strategies and luxury
retailers should stress the relationship between the brand name and its user’s‎status.‎The‎
quality of the products also has to be emphasized in order to appeal to the high functional
intention consumers.
Luxury retailers should enhance the uniqueness value of their products. Per the
results of this study, consumer guilt moderated the relationship between uniqueness and
luxury purchase intention. Therefore, if a consumer is motivated by uniqueness,
producers of luxury products must make sure their products are deemed distinctive. If
they are not deemed distinctive, the feeling of guilt will affect their purchase intention,
which may lead to regretting and returning their purchase (Chatvijit, 2012).
Although individual values did not show a significant impact on luxury purchase
intention, United States and Saudi participants showed differences that marketers should
be aware of. Saudi participants scored higher in self-identity value; therefore, marketers
should consider producing luxury products that align with‎Saudi‎consumers’‎identity.‎
Since most Saudis are conservative and still wear traditional Saudi clothes (Saudi Arabia
Balances Liberals and Conservatives, 2014), marketers should provide luxury products
that promote Saudi tastes and Saudi identity, and also relates to the conservative nature of
their chosen apparel.
105
5.5 Limitations and Future Research
This study is subject to a few limitations. One of the main limitations is that the
participants all resided in one city in Saudi Arabia and one city in the US. In order to
generalize the results, participants from different cities in both countries have to be
considered. Although the results may be generalized for countries with similar cultural
values, such as other Arabian Gulf countries, different results may appear in different
cultures. Thus, the first recommendation for future researchers is to conduct further
studies to examine other Arabian Gulf countries, such as the United Arab Emirates,
Kuwait, Bahrain, and Qatar, which are some of the largest potential markets for luxury
brands in the next few years. At present, Gulf countries are becoming an increasingly
important luxury brand market as oil prices are still high ‎and many tourists flock to Dubai
(Vel et al., 2012).‎
The second limitation is that the focus of this study is on luxury purchase
intention instead of luxury brand consumption. Although purchase intention is more
effective in predicting purchase behavior than attitude‎, is not as effective as examining
behavior itself. People can have beliefs, but these cannot necessarily predict their
behavior (Solomon, 2011). For future studies, it would be more effective if the
researchers examined the behavior of purchasing luxury brands.
The third limitation of this study is the gender of the participants. Most of the
Saudi participants were female (97.1%). Thus, it seems that Saudi women were compared
with US men and women. The fact that there were only a few males in the Saudi sample
may impact the results of the study. Further studies with an equal number of males and
females should be conducted.
106
5.6 Summary
In this chapter, a brief discussion of the major findings and hypotheses testing was
provided. Then, the implications of the study were presented. Finally, the limitations and
suggestions for future research were highlighted.
107
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APPENDIX A: IRB FORMS
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APPENDIX B: SURVEY QUESTIONS
QUESTIONNAIRE DRAFT:
An Assessment of Values Concerning Luxury Brand Purchase Intention:
A Cross-Culture Comparison
Please read the following definition before you answer the questions below.
Luxury brands are brands that represent the highest level of prestigious products, and are
associated with exclusivity and a high price.
Given the above definition, would you consider purchasing a luxury brand for
personal usage, family usage, or for gifts to family/friends?
Yes__‎No__‎(Those‎who‎answer‎“no”‎will‎not‎qualify‎to‎move‎forward‎with‎the‎survey)
Which of the following brands would you consider purchasing (Check all that
apply)?
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



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Gucci
Chanel
Dior
Louis Vuitton
Giorgio Armani
Prada
Burberry
Tiffany & Co
Cartier
Hermes
Ralph Lauren
Dolce & Gabbana
Salvatore Ferragamo
Calvin Klein
Fendi
Chloe’
Moschino
Christian Louboutin
Jimmy Choo
Michael Kors
Manolo Blahnik
Other (please specify)_________________________
121
Part 1: Collectivism and Individualism
Thinking about your personal values and general way of life, please indicate your
agreement or disagreement with the statements below.
Parents and children must stay together as much as possible

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
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
It is my duty to take care of my family, even when I have to sacrifice what I want





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Family members should stick together, no matter what sacrifices are required





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
It is important to me that I respect the decisions made by my groups

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


Strongly disagree
Disagree
Neutral
Agree
Strongly agree
122
If a coworker gets a prize, I would feel proud





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
The well-being of my coworkers is important to me





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
To me, pleasure is spending time with others





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I feel good when I cooperate with others





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
It is important that I do my job better than others





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
123
Winning is everything





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Competition is the law of nature





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
When another person does better than I do, I get tense and aroused





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I’d rather depend on myself than others





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I rely on myself most of the time; I rarely rely on others





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
124
I often do my own thing





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
My personal identity, independent of others, is very important to me





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Part 2 Functional Value
Thinking about your luxury purchase intention, please indicate your agreement or
disagreement with the statements below.
Product quality superiority is my major reason for buying a luxury brand





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I place emphasis on quality assurance over prestige when considering the purchase
of a luxury brand





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
125
A luxury brand preferred by many people that does not meet my quality standards
will never enter into my purchasing considerations





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I'm often on the lookout for new products or brands that will add to my personal
uniqueness





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Having an eye for products that are interesting and unusual assists me in
establishing a distinctive image






Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I often try to find a more interesting version of run-of-the-mill products because I
enjoy being original





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
126
I often dress unconventionally even when it's likely to offend others





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
If someone hinted that I had been dressing inappropriately for a social situation, I
would continue dressing in the same manner





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I dislike brands or products that are customarily purchased by everyone





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I often try to avoid products or brands that I know are bought by the general
population





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
127
Part 3 Social value
Still thinking about your luxury purchase intention, please indicate your agreement or
disagreement with the statements below.
Luxury brands symbolize one’s social status





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Luxury brands represent the latest lifestyles





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Luxury brands signify one’s trendy image





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Luxury brands are associated with the symbol of prestige





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
128
Product prestige is my major reason for buying a luxury brand





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
It is important for me that the luxury brand I buy improves my image





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
The luxury brand I purchase must be a status symbol





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Part 4 Individual value
Still thinking about your luxury purchase intention, please indicate your agreement or
disagreement with the statements below.
I never buy a luxury brand inconsistent with the characteristics with which I
describe myself





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
129
The luxury brands I buy must match what and who I really am





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
My choice of luxury brands depends on whether they reflect how I see myself but
not how others see me





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I buy a luxury brand only because it pleases me, so I do not care about whether it
pleases others





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I tend to concentrate consumption on my own pleasure rather than others', so I
consider only my own pleasure





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
130
I can enjoy luxury brands entirely on my own terms, no matter what others may feel
about them





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Based on your overall opinion of yourself, please indicate your agreement or
disagreement with the statements below.
On the whole, I am satisfied with myself





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I feel that I am a person of worth





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
All in all, I am inclined to think that I am a failure. (Reversed)





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
131
I take a positive attitude toward myself





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Part 5 Consumer Guilt
Please answer the following questions based on how you may or may not feel regarding
purchasing a luxury product. Please indicate your agreement or disagreement with the
statements below.
Anticipating a future regret makes me behave more responsibly during shopping.





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I do not buy expensive products in order to avoid guilt feelings





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
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Part 6 Attitude toward Luxury:
Thinking about your luxury purchase intention, please indicate your agreement or
disagreement with the statements below.
I buy luxury brands because they have many benefits (e.g., quality, designer,
fashion, status, etc..)





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Luxury brands satisfy my needs





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Luxury brands help to show my social status





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
In general, I am happy with luxury brands





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
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Part 7 Luxury Purchase Intention
Thinking about your luxury purchase intention, please indicate your agreement or
disagreement with the statements below.
I purchase luxury brands to show who I am





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I would buy a luxury brand just because it has status





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Owning luxury brands indicate a symbol of wealth





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I would pay more for a luxury brand if it has status





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Luxury brands are important to me because they make me feel more acceptable in
my work circle





Strongly disagree
Disagree
Neutral
Agree
Strongly agree
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Finally, tell us about yourself.
1. What is your gender?


Female
Male
2. What is your age?





18 to 24
25 to 34
35 to 44
45 to 54
55 or older
3. What is your ethnicity?







American Indian or Alaskan Native
Asian or Pacific Islander
Black or African American
Hispanic or Latino
White / Caucasian
Arab
Other (please specify) ‫ــــــــــــــــــ‬
4. What is your approximate average household income?









$0-$24,999
$25,000-$49,999
$50,000-$74,999
$75,000-$99,999
$100,000-$124,999
$125,000-$149,999
$150,000-$174,999
$175,000-$199,999
$200,000 and up
Thank you
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APPENDIX C: TRANSLATED SURVEY
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VITA
Tagreed Abalkhail was born in Riyadh the capital city of Saudi Arabia. She
finished her ‎undergraduate studies at Qassim University in June 2000, where she earned a
Bachelor degree in Arts ‎& Home Economics. From 2001 to 2004, she taught home
economics at private school (AlZahraa ‎Privet School) in Jeddah, Saudi Arabia. In
October 2005, Tagreed began her career in academia as a ‎teacher assistant of Fashion
Design at Qassim University while pursuing her Masters degree from King ‎Abdulaziz
University, specializing in Apparel & Textile with a concentration in Apparel Design.
In ‎August 2012, she came to Louisiana State University to pursue graduate studies in
Fashion ‎Merchandising. Upon receiving her Doctor of Philosophy degree, Tagreed plans
on building a career as ‎a college professor in the field of Textiles, Apparel Design, ‎and
Merchandising in Saudi Arabia.‎
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